Consumer Staples continue to be one of the leading sectors as we head into year-end. And if you know anything about the gang here at All Star Charts, we love to be long stocks and sectors that are showing strong relative strength.
So for our last new trade for 2022, we're going to take a big swig of an energy drink maker.
Today officially marks the beginning of the Santa Claus Rally.
As we already discussed earlier this month, the SCR period runs during the final 5 trading days of the year and the first 2 of the following year.
So due to the holiday schedule, the 2022 SCR goes from today December 23rd through Wednesday January 4th.
The average performance during these 7 days is 1.33% and is positive 79.2% of the time. This is a big difference from all the other 7 day periods throughout the year, that only average 0.24% returns. They're also positive less than 60% of the time.
So we've found that there's real alpha during this period.
The US dollar has been an incredible reflection of financial conditions this year. By extension, the correlations between the dollar and risk assets have held firm.
Equities and crypto were under pressure whenever the US dollar trended higher in 2022.
And when the dollar was correcting, equities and crypto were trending higher.
