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…