Santa Claus Rally failure (Preview)
By Lawrence G. McMillan
Much of what is written below was written a year ago, when the Santa Claus rally also produced a loss. At that time, $SPX rallied immediately from there and never looked back. But the analysis is still valid.
When the typical Santa Claus Rally seven day trading period produces a loss, it is generally a short term problem for stocks. This was stated, poetically, by the system’s creator, the late Yale Hirsch: “If Santa Claus should fail to call, bears may come to Broad and Wall.”
