Santa Claus Rally is a seasonal trade opportunity with 75% success happening regularly and consistently like clockwork for the past 50 years… So it makes a lot of sense that we should prepare for it.
“Since 1969, the Santa Claus rally has yielded positive returns in 34 of the past 45 holiday seasons…” said a widely-circulated Seeking Alpha article in 2017, quoting the analysis of The Stock Trader’s Almanac.
We cannot predict whether a Santa Claus Rally will happen this year, nor anticipate whether it will create trade opportunities when it happens… However we can put in place a trading strategy and a trading plan. So that when a Santa Claus Rally happens, we are ready to take full advantage of the trade opportunity.