The Santa Claus Rally

We’re about to enter the strongest time of the year for the stock market.

The following chart is based on the Dow’s historic daily changes from 1896 to 2007. The Dow has an average gain for every day from December 22 to January 7 (except for the two holidays of Christmas and New Year’s Day). Over this 17-day period, the Dow has an average gain of 3.39%. That’s more than 40% of the Dow’s annual gain.

(I should add that when looking at this chart, bear in mind how narrow the range is for the Y-Axis.)

Posted by Eddy Elfenbein on December 20th, 2010 at 2:53 pm

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