Santa's Message !

See this link for the full article
http://www.cbc.ca/news/business/santa-claus-rally-1.3389411
January 5,2016
By Daniel Schwartz, CBC News

1) Seventh Year of a Two Term Presidency
Jeffrey Hirsch, editor of the Stock Trader's Almanac, notes that 2015 was the first time since 1939, the year the Second World War started, that the Dow Jones industrial average was down in the seventh year of a presidency. Over 1940 and 1941, the Dow fell by about one-third.

2) Final Year of a Two-Term Presidency
Hirsch also points out that in years like 2016 (the final year of a two-term presidency), the Dow averages a drop of 13.9 per cent, and the index has been down in these cases five of the last six times.

3) No Santa Claus Rally (Dec 23rd to Jan 5th = S&P500 down -47.58)
There's been lots of talk in the business press in recent days about the Santa Claus rally. Definitions vary, but since the term was coined by the founder of the Stock Trader's Almanac, Yale Hirsch (Jeffrey's father), we'll use his benchmark. It looks at the overall performance of the last five trading days of a year, plus the first two trading days in the new year.
This year's result will be known when markets close today, but it's not looking like a rally.
For a rally to materialize, the S&P 500 needs to surpass its Dec. 23 close of 2,064.29. The index's closing price on Monday was almost 52 points away, 2,012.66. On only one day in the last four years has the index risen more than 52 points.

'If Santa Claus should fail to call, bears may come to Broad and Wall.' That legendary Wall Street saying, coined by Yale Hirsch, means that if there is no Santa Claus rally, the outlook for U.S. stock markets becomes gloomy. (Seth Wenig/Associated Press)

Jeffrey Hirsch told CBC News the seven-day trading stretch is usually positive for stock markets because tax-loss selling has ended for the year, funds are busy with year-end padding of portfolios and the people still trading stocks during those days are "mostly professionals buying beaten-down stocks, so when you don't have that rally there, it's an indication that the pros are not really enamoured with the outlook for the market, and that's a negative indicator for the future."
His father coined the legendary saying, "If Santa Claus should fail to call, bears may come to Broad and Wall." And the last four times the Santa Claus rally was negative, Jeffrey Hirsch points out, Wall Street's year would go on to be either flat or have a bear market.

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This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results