What is a “Santa Claus Rally”?
This week there are some key considerations for traders:
- The possibility of a "Santa Claus rally" (this term refers to a typically positive market trend in the last week of the year and the first two of the new year).
- In the final week of the year, there is a potential for low liquidity in the market due to the holiday season.
- The importance of reflecting on one's own trading performance over the past year.
- Traders may want to take a break during the holiday week, but if you do choose to trade, be mindful of the low liquidity and consider looking back on your performance to identify areas for improvement.
As always, if you’re in the markets, make sure you have a trade plan.