The Santa rally - fact or fiction?

Reading price charts which may give you direction in the market using established TA methodology
DiamondEcho
Lemon Slice
Posts: 369
Joined: November 4th, 2016, 3:39 pm

The Santa rally - fact or fiction?

Postby DiamondEcho » December 8th, 2016, 8:42 am

Concise and interesting article on the subject from IG -> https://www.ig.com/uk/trading-opportuni ... ion--35686

The conclusion:
'We found the best time period to invest [FTSE-100] has been 15-31 December, with an average annual return of 2.53%, and a positive return 87% of the time.'

And the returns in that period for the last 3 years? [rounded to zero DP]
2013 - 5%
2014 - 4%
2015 - 6%

oldcharlie
Lemon Pip
Posts: 78
Joined: November 5th, 2016, 1:03 pm

Re: The Santa rally - fact or fiction?

Postby oldcharlie » December 8th, 2016, 9:46 am

DE,

Very interesting aticle based on some original historic research and well summarised by your good self.

The time to be afraid is when everything looksuniversally bullish! However, if the 6950 resistance and the short term down trend on FTSE can be broken (and they looks to be holding in early morning trading) then the period 15th to 30th could produce the Santa Rally Inspired perhaps by further UK currency weakness and an EU bail out the Italian banks?

OC


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