Ian Woodward's Investing Blog

Stock Market: All Eyes Looking for a Santa Claus Rally

I used this Picture six years ago to kick off the Santa Claus Rally, and we have a repeat this past week!

Santa Picture

The Bounce Play off the “V” Bottom has been very impressive with 30 Trading days up, so we had the expected pullback and Pause to Refresh this past week.

Santa Indexes

Fortunately the Volatility Index VIX is quiet, so there is room to play until one gets really cautious again:

Santa VIX

The Accumulation:Distribution Ratio couldn’t maintain the high number of 3:1 and so it has backed off with expectations to go to stalemate at 1:1 sooner than later.

Santa abcde

With 30 consecutive trading days up, it was high time for a Pause to Refresh and it was an easy call to make which I did last week:

Santa Pat

The Twelve Drummers Drumming History over the last two years has now established the longest run at 30 Trading Days, so this will become a valuable yardstick to bear in mind for future long rallies:

Santa drummers

Enjoy your weekend.  Best Regards,

Ian.

2 Responses to “Stock Market: All Eyes Looking for a Santa Claus Rally”

  1. Eddie Says:

    It are patterns that repeat itself , not history….

  2. ian Says:

    I don’t disagree with you Eddie, but when they repeat themselves infrequently at the same time then the significance of the event especially at Santa Claus Rally times lead to history!

    Ian.

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