Market Milestones: SANTA!

[Image] Good morning , Merry Christmas Real Life Trading family! The SPY, QQQ and DIA are trying their very hardest to pull off eight bullish weeks in a row. Unless there is a decent gap down this morning, it is likely they will. The bears tried mightily, for a couple of hours on Wednesday, to bring this rally to a halt. However, the bulls were having none of it and slapped the bears with a bullish gap and go on Thursday morning. The previous three times a bearish reversal candle was followed by a bullish gap and go, the market continued to rip higher. The previous three times before that, the market went lower. The direction for next week may be decided by the direction that Thursday’s candle breaks. SPY [Image]( QQQ [Image]( [Image] Today, Friday, December 22, 2023 officially kicks off the Santa Claus Rally. I know what you are thinking, the previous seven weeks of blisteringly bullish price action that scorched bears faces and broke their hearts was not a Santa Claus rally? Although it was a magical time for the bulls, it was not the technical Santa Claus rally. The Santa Claus Rally is actually the last 5 trading days of the calendar year and the first two trading days of the next year. This 7-day period has massive bullish edge and is higher almost 80% of the time with an average return of 1.32%. This means that if the markets pull off eight weeks of bullish price action in a row today, there is a high likelihood that becomes nine weeks by the time you are reading the next Market Milestones. Another really interesting statistic is what happens when Santa plays hooky and doesn’t show up for the Santa Claus rally. It looks very similar to what the Grinch was expecting to happen. Lots of tears, wailing, crying and tantrums on the living room floor as bullish traders ask how and why Santa could do this. There is no little Cindy Lou singing Christmas carols, only bulls sniveling in the corner of their rooms as to the possible implications of no Santa Clause Rally. The chart below from [@ryandetrick]( illustrates the ominous warning that coal in our stockings next week could bring. [Image] Over the last 30 years, the Santa Claus rally has materialized all but six times. Five out of six times, January ended negative and four out the six times saw a red year, including 2007 and 1999. All I am saying is that if you know anyone at the North Pole, give them a call and make sure Santa Claus is coming to town. Strive On, Yates Craig, RLT & TPN Market Analyst Disclosure: You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We trade ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do your own research before buying any securities. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221