It’s that time of the year again. This is when we hear things like the “January Effect”, the “First 5 Days of the Year Indicator”, “Santa Claus Rally”, “January Barometer” and all sorts of seasonal-type conversations.
Remember, we’re right in the heart of “The Best 3 Month Period of the Year”. You always hear, “Sell in May and Go Away”, but as we pointed out on Nov 6th, it’s waaaay more important to “Remember to Buy in November”, or “Buy in October and Get Yourself Sober”. Either one of those works.
Wall Streeters have all kinds of silly sayings to help remember important things. “The trend is your friend”, “Don’t fight the Fed”, and “Bottom Fishing Can Be Hazardous To Your Wealth” are all good ones that you’ve probably heard before.
Today I want to talk about the significance of the Santa Claus Rally, and the fact that it might not even come at all. And that in and of itself would be the signal.
Let me explain. [Read more…]