Let’s take a look at the S&P 500, starting in 1959, to chart the average December performance.
I’ve assumed that the $SPX was bought on the open on the first trading day of December and sold at the close on the last trading day of December.
As shown above, Santa really gets flying about halfway through December. In fact Santa rarely disappoints. We can see how true this is below.
The graph above shows the profit distribution of all Decembers since 1959. 73% of the time, Santa brings gifts to good little trader boys and girls. On average, he stuffs our stockings with a December profit of 1.56%.
Merry Christmas to All!
I hope this season brings much happiness and joy to you and yours…
8 Responses to Charting the Santa Rally (December Seasonality)
Merry Christmas back to you, and to all gentleman of the south.
Cheers to you Caffeinated!
Results are even better when you apply a simple trend filter, e.g. index trading above the 50 day moving average at the beginning of the month….
I’m sure they are, but I just wanted to see the big picture.
Merry Christmas Woodshedder. It’s been a terrific year; looking forward to the next one.
Best to you Mr. Thaler. I’ve enjoyed your posts this year!
Love the festive charts. Hope you have a very merry christmas, too, woodshedder!
Thanks Data! We have finished our travels and our now resting (celebrating) with a lot of family.