Friday, January 02, 2009

Stormin' Santa

According to the Stock Trader's Almanac, the "Santa Claus rally" is the period of the last 5 trading days of December and the first 2 of January.

Few thought we would get a really big Santa bounce this year, but guess what, so far the SPX has rallied +7.0% over the last 6 days. Not bad, huh?

I actually played this trend via the SSO, but I was a little early in my buying, which has dampened my gains so far. We still have one more day for this stat, but so far, so good.

The action today is very widespread and very bullish. The SPX has broken above its 12/17 highs, and all of the major indexes are now comfortably above their respective 50-day averages.

How quickly do you think performance anxiety becomes a factor for the multitudes of fund managers who are likely underinvested for this?

long SSO


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