Wednesday, 26 December 2012

Santa Claus Rally has begun! 7 trading days to take note of to predict year 2013

Dear Friends,

A cliche in Wallstreet you may have heard of is what we called the year end Santa Claus Rally. Statistics have shown that santa claus rally start on the last 5 trading days of the year and ends after the first 2 trading days in January. It has been an average of 1.6% gain since 1969.

Stats have also shown that if Santa Claus Rally does not happen, chances are high that next year might be a bear market or a bad year. Examples of down santa days are year 2007 (start of sub-prime), year 2004 (Middle East Terror), year 2002 (Nasdaq collapse).

If indeed S&P500 did rally in the last 7 days, chances are high that 2013 might be a good bullish year. So let us keep a close lookout on the S&P500.

For Singapore market, the STI has shown its resilience again after being down for a couple of days. But we have to remind you that STI might face a resistance between 3210-3240 region. Let us see how it performs once reached.

By the way, stats also shows that Nasdaq is up 11 of last 12 times on the last day of december. Good to enter some nasdaq related stocks on the 2nd last 2 days.

Happy Holidays
Daniel
www.danielloh.com

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