OK, the much anticipated Santa Rally ended, the results are listed below. Not bad but not impressive either.
Now, what about the seasonality after the Santa Rally? According to www.sentimentrader.com, using SPY prices, the period from the 2nd trading day of the year, through two weeks later, was positive only 29% of the years since '95, with a negatively skewed risk/reward (-4.0% versus +1.9%). Well, let’s wait and see.
One trick today, the CPC < 0.8 triggered a Firework trading setup (forget about the setup name for now – it’s a long story, basically it’s a long setup) which had 67% successful rate in the past. Not working good recently, so again pay attention to the past failures (Blue cycles): If small bar again the next trading day or the firework shoots high then falls to the ground on the same day then most likely this is a failed setup.
Disclaimer
The information contained on this website and from any communication related to the author’s blog and chartbook is for information purposes only. The chart analysis and the market recap do not hold out as providing any financial, legal, investment, or other advice. In addition, no suggestion or advice is offered regarding the nature, profitability, suitability, sustainability of any particular trading practice or investment strategy. The materials on this website do not constitute offer or advice and you should not rely on the information here to make or refrain from making any decision or take or refrain from taking any action. It is up to the visitors to make their own decisions, or to consult with a registered professional financial advisor.
This websites provides third-party websites for your convenience but the author does not endorse, approve, or certify the information on other websites, nor does the author take responsibility for a part or all materials on the third-party websites which are not maintained by the author.
