Will there be a Santa rally this year?

by
0 comment

The Wall Street indices started turning green late last night, raising the question of whether it could be the start of a Santa rally.

Jim Cramer is expecting a Santa rally

According to Jim Cramer, there is no reason to believe that we won’t see a Santa rally this year. On CNBC’s “Squawk Box”, he said:

Historically, today is the day that Santa rally starts. It worked even during 2007-2009. Almost every single year, if you bought today and just held for six days, you made money. It is uncanny. It is hard to go against something that’s been right every time.

The Mad Money host reiterated that the Santa rally had worked even during the toughest years, including 2018 when Powell was talking about “lockstep three”. He, however, confirmed that the Santa rally was a short-term trade and not a long-term trend.

FxPro analyst agrees the Santa rally has begun

Also on Tuesday, FxPro’s Alex Kuptsikevich said he saw positive sentiment late on Monday as the start of this year’s Santa rally. The senior market analyst wrote:

The bottom is often near the 20th on expirations of futures/options. In the last ten days, we see capital inflows into the markets. Indices were away from highs but saw buyers’ interest at the end of the day on Monday. The positive sentiment also extended into the Asian and European sessions.

A 4.0% gain in Bitcoin and Ether, he added, are among other indicators that suggest bullish sentiment is afoot. According to Kuptsikevich, the sectors that outperform in the last ten days of December could be a telltale for what to expect from 2022.  

The post Will there be a Santa rally this year? appeared first on Invezz.

Related Posts