With that in mind, here are several stocks and strategies for a 2011 Santa Claus Rally.
Then the focus shifted to anticipation of QE4 and the Santa Claus rally began.
Wall Street believes its dream of a Santa Claus rally will surely come to pass.
The Santa Claus rally now shows a rise of 5.5% since November 16.
FORBES: Five Exchange-Traded Funds Lagging The Santa Claus Rally
History has shown that stocks rise in the days leading up to the holiday, a phenomenon known as the Santa Claus Rally.
The "Santa Claus Rally" remained intact on Friday, but just barely.
The Santa Claus rally slowed to a gain of 5.9%.
FORBES: Five Exchange-Traded Funds Lagging The Santa Claus Rally
The Santa Claus rally is now a gain of 5.6%.
FORBES: Five Exchange-Traded Funds Lagging The Santa Claus Rally
Within this environment the Santa Claus rally that began on November 16, due to optimism about finding solution to the fiscal cliff, ended on December 18 due to the lack of progress in doing so.
The FOMC announced QE4 last week on December 12 and the highs that day could be the highs for the highs for December and signal that the Santa Claus rally has indeed stalled, and the market focused back to the cliff.
No one is very certain about what drives a Santa Claus rally, but there are numerous explanations: tax considerations, sentiment on Wall Street, putting Christmas bonuses into the market, or simply the absence of the pessimists, thought to be on vacation.
"This is another negative indication on top of the missing Santa Claus Rally, a down First Five Days and the Dow closing below its December closing low on January 21 triggering the December Low Indicator, " says Hirsh, who adds that the market is completing a two-year bearish "three peaks and a domed house" pattern coined by technical analyst George Lindsay.
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