Santa Claus Showed Up This Year

JC Parets
January 6, 2021

Now that the official period of the Santa Claus rally is over, we can look back and see if Santa actually showed up or not.

As we discussed last month before it got started, the Santa Claus rally lasts for 7 trading days: the last 5 of 2020 and the first 2 of 2021. Based on the way the calendar worked out, this year's festivities began on December 24th and lasted through yesterday, January 5th.

The S&P500 rallied about 1% during this period, which is perfectly normal market behavior for this time of year:

Remember, Santa showing up when he had to doesn't give us much of a signal. It's when he doesn't show up that historically precedes periods where stocks are under pressure. We go into detail about that here.

So what do we do now?

Nothing.

Carry on with what you were doing before.

There's nothing to see here.

JC

 

 

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