In a new report, Oppenheimer analyst Ari Wald discussed the stock market’s technical setup heading into the end of 2015. Wald also named airlines as the best-positioned group from a technical perspective.
Santa Claus Rally
The Santa Claus Rally refers to the tendency for stocks to rally during the last five trading days of a year through the first two trading days of the New Year. Historically, the S&P 500 has averaged a 1.8 percent gain during this period since 1928 and has produced a positive return 78 percent of the time.
This year’s Santa Claus Rally period begins on December 24, but Wald notes that the market’s performance during this period can have an impact lasting much longer than seven days. In fact, the S&P 500 tends to underperform for up to six months following the Santa Claus rally period if it fails to generate positive returns by the end of the second trading day of the New Year.
Oppenheimer is calling…
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!