You have no doubt heard of the Santa Claus rally; the tendency for shares to rise in the second half of December in anticipation of new money coming into the markets in January. Well, I’m wondering if Santa Claus has come early.
After trading sideways for a couple of months, then dipping downwards, the FTSE 100 has appreciated by about 6% over the course of the month from mid-November to mid-December. Now it looks set to break through resistance at 5900 as you can see in the Capital Spreads chart below.
Some of my long-standing position trades have appreciated nicely during this time, so long may it continue. Maybe it’s a precursor to the “real” Santa Claus rally that should begin any day now.
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Disclaimer: this posting is for general education only; it is not trading advice.