‘Santa Claus’ rally has begun. Why few 7-session stretches are better for the stock market. MarketWatch 12/28/2020
THE TELL
Santa Claus may not be coming to town due to the pandemic, but he will pay a socially distant visit to Wall Street equity traders if history is any guide.
Stocks have performed exceedingly well during a seasonal period that includes the year’s last five trading days and the first two sessions of the new year, in what’s come to be known as the “Santa Claus” rally.
That period, which started lastThursday this year, is considered one of the best seven-day stretches for equities in any point in a year, boasting an average return of 1.3%, the second best performance among any seven-day period in a year. The span has also finished positive in nearly 78% of some 250 trading sessions, according to Ryan Detrick, chief market strategist for LPL Financial, in a Wednesday research note (table below).
Santa Claus may not be coming to town due to the pandemic, but he will pay a socially distant visit to Wall Street equity traders if history is any guide.
Stocks have performed exceedingly well during a seasonal period that includes the yearâs last five trading days and the first two sessions of the new year, in whatâs come to be known as the âSanta Clausâ rally.
That period, which started lastThursday this year, is considered one of the best seven-day stretches for equities in any point in a year, boasting an average return of 1.3%, the second best performance among any seven-day period in a year. The span has also finished positive in nearly 78% of some 250 trading sessions, according to Ryan Detrick, chief market strategist for LPL Financial, in a Wednesday research note (table below).