Holiday stock trading incorporates a different element of investor sentiment.  Holiday stock trading usually involves the reminiscence and evaluation of what the year has witnessed as far as economic expectations.  Just as the holidays bring a reflection of what we have done with our own lives for another year, that same sentiment is usually applied to the economic markets.  What was expected for the economy, the projections made in January? Did it live up to or exceed the expectations that were first verbalized 10 months ago? And there was always the nay sayers.   No matter how well the economic environment appeared to be doing, there was always the apprehensive “BUT” at the end of most economic evaluations. Computer sales were good this quarter BUT …… Unemployment has been at the lowest level in decades BUT…… The housing market has been very strong BUT…..

When the holiday season arrives, there is not much time left in the year. Money managers, that have held funds in reserve, because of all the possible detrimental factors that could affect the markets, now realize that the economy is apparently just chugging along at a slow and consistent pace, not having been affected by all the negative influences that could have occurred by the end of the year.

What is a Santa Claus rally? It is a money managers rushing to put uncommitted funds back into a stock market that has not experienced the “anticipated”  pullback. Who wants to be explaining why they did not have all their funds committed to a market that has not experienced any negative economic factors for the past year? Thus the Santa Claus rally!

Where does an investor start putting investment funds during a strong rally? The candlestick signals and patterns make that decision much easier. Holiday stock trading can provide very large year-end  profits. When investor confidence starts to build up, the question does not become whether or not to have funds committed to the market, it is where should they be committed.  Candlestick signals illustrate which sectors or stocks are getting strong investor participation.  The analysis of candlestick charts makes this evaluation easy

Are Christmas sales weak or strong? Are shipping companies nearing full capacity?

It is High-Tech selling well this year?