Santa Claus Rally
Swing Trading the Stock Market
Ryan Mallory
4.7 • 828 Ratings
🗓️ 12 December 2019
⏱️ 12 minutes
🧾️ Download transcript
Summary
Every year you hear about the "Santa Claus Rally" on Wall Street, or just the "Santa Rally" for short. More than the legend in which it is named after, traders expect this to happen at the end of every year. But what is it exactly, and what should we expect from it each year. In this podcast I explain where the Santa Rally comes from and how you can trade it and what your expectations for it should be.
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*Disclaimer: Ryan Mallory is not a financial adviser and this podcast is for entertainment purposes only. Consult your financial adviser before making any decisions.
Transcript
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| 0:00.0 | Learn to trade stock successfully. |
| 0:09.3 | Learn to profit consistently. |
| 0:12.2 | I'm Ryan Mallory, and on my weekly podcast, I'm going to teach you the ends and |
| 0:16.9 | outs of a complex, ever-changing stock market. You will learn to trade better, trade smarter, |
| 0:24.6 | and profit figure. Now, let's go trade. |
| 0:30.3 | Hey, everybody. This is Ryan Mallory with swing trading the stock market. And it's been a while |
| 0:35.2 | since I did my last podcast. I think it's been about, what, two weeks or so? Three weeks. Three weeks, I think, is how long it's been a while since I did my last podcast. I think it's been about what two weeks or so |
| 0:38.6 | three weeks three weeks I think is how long it's been because I've missed the last two weeks |
| 0:42.6 | obviously the first one was for the Thanksgiving break and then the second one was for |
| 0:48.0 | trying to get caught up from being off for Thanksgiving so it's been playing a little bit of |
| 0:52.4 | catch up here but I'm excited to do this podcast episode today Today we're talking about the Santa Claus rally, and it's this phenomenon |
| 0:58.2 | that goes on in this market for years and years and years now, where there tends to be a rise in |
| 1:05.2 | stock prices during the last five trading days in December and the first two trading days |
| 1:09.8 | in the January that follows. |
| 1:12.6 | Now, if you take a look at the stock traders, Omanac, so I'm going to give them credit here, |
| 1:16.3 | it will tell you that stock market rises about 1.3% on average during those seven trading days, |
| 1:22.3 | and historically speaking, the stock market is up 76% of the time. And let me tell you, that's very well above |
| 1:30.2 | average. But then you say, well, what about last year? Because December of last year, that was |
| 1:35.5 | horrendous. It was really bad last December. I know. I know the stock market was dropping like a rock |
| 1:41.3 | last year. I actually had a profit during that time, which is kind of cool. |
| 1:44.7 | I like to brag about that a little bit, toot my horn. But in any case, on the surface you would think, |
| 1:50.1 | there was no way that there was a Santa Claus rally last year in the stock market when the month |
... |
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