Half Way Through This Year's Santa Claus Rally

December 29, 2022

We're officially half the way through this year's Santa Claus Rally.

I like to check in on this one as it goes on because of the impact it's had on past markets.

And when we talk about the Santa Claus Rally we are paying particular attention to whether Santa even shows up or not.

I went into its history last week. Check that out here.

On average the S&P500 rallies 1.33% during these 7 days, which is off the charts compared to every other 7 day period throughout the year, which only averages 0.24%. Santa shows up and stocks rally almost 80% of the time during this period, compared to just 60% during any other time of the year.

Now that we're through the half-way mark, we can see that the S&P500 is up 0.75%, well on pace to reach the average return by the market close next Wednesday Jan 4th.

It's been a choppy few of days, but the bulls took the control back that they had early on.

We'll continue to track what's going on here, mostly because of the implications of Santa not showing up.

We've seen a consistent bid in most stocks and sectors during the back half of this year. The real selling in 2022 took place during the first half.

So while some are waiting for the market to "bottom", or wondering when stocks are going to "start" to go up, we've been more focused on all the stocks and sectors that bottomed over 6 months ago and all the stocks that keep making higher highs.

So you tell me. What are you focused on in this environment?

Please feel free to chime in.

We love to hear from you!

- JC