As we enter the Season of Giving, traders may be wondering whether the season’s generosity extends to the stock market. Fortunately, the answer is usually yes. The broader market has a tendency to finish the year strong, and during bear markets, that strength can be even more dramatic. In fact, over the last 94 years, December has been the second best-performing month for stocks, with the S&P 500 Index generating an average return of 1.4%. This phenomenon is known as the Santa Claus Rally.
However, knowing that stocks are likely to be positive in December is only one piece of the puzzle. Traders must also know how to take full advantage of all the opportunities that may present themselves. Traders may look to capture gains through the use of call options and front-running. But traders can also use this opportunity to exit losing positions with an eye on repositioning their portfolios for the following year.
Join John Rowland, Barchart's Head of Trading Education, as he teaches the mechanics behind the Santa Claus Rally. John will show how behavioral finance creates a self-fulfilling prophecy. But more importantly, John will also explain how you can take full advantage of this unique seasonal trading opportunity. Christmas comes but once a year so don’t miss this chance to fill your stockings with profits before Santa heads back to the North Pole.
In this webinar, you will learn about:
- Mechanics behind the Santa Claus Rally
- Market Behavior
- Portfolio Repositioning
- Seasonal Trading Ideas
#stockmarket #tradingtips #tradingmindset
