Saturday, December 11, 2010

Is the Santa Claus Rally Over?

Is the year-end rally over?

Interesting column at CNBC (using iPhone app) that says the average rally from Thanksgiving to year end is 3.4% and here we are with a 3.5% rally under our belts with trading volume declining.

My thought is that even if true, are there enough sellers to drive the market Down? The saying is never short a dull tape. And with volume skimpy, who wants to risk that?

In addition, it would seem as if folks would want to have the big gainers in their portfolios to show on the year-end balance sheet. So I'm wondering that any major selling or rebalancing would happen in the new tax year.

Just thinking out loud.

blog comments powered by Disqus