Wow post Xmas very Bullish - WHY?

[toc_bat]

Hi all

well ive been away from the computer for a little while now, hence away from the markets.

And most of the stocks on my watch list - too bad i dont own em - have all done really well after christmas, u all know what i mean for sure. I mean that a lot of them have been steadily sliding or dropping the week or two prior to xmas and now theyve "all" bounced back, ie TRO BMN MLS etc - etc not being a stock, it being etcetera

Whats going on? Why the sudden rises? Is every christmas like this? Has there been a huge amount of cash discovered in peoples stockings?

Ok bye

PS of course the stock i own, INL has failed to keep in line so far, im still baffled as to why this one new producer is not doing as well as the speccies? i guess thats the nature of speccies, everyone expects them to do crazy stuff so they attract a lot of cashola. hmmm. come on INL my sanity is riding on you baby.

 

[Buy low. sell high]

Yeah I noticed that too, I have no real idea why it has happened but heres three guesses:
1. People assume that nobody else is watching the market at this time of year so they think they may get bargains that nobody else is noticing. More buying than selling = prices go up
2. Many people off-loaded some of their shares for extra cash before christmas, more selling than buying = prices going down before christmas and rebounding now.

or (the most likely)

3. Its just normal market fluctuations, it went down so now it'll come back up; regardless of christmas.

Just to repeat, I have no idea

 

[happytrader]

Its the Santa Claus rally.

Cheers
Happytrader

 

[reece55]

If you ask me it is because the professionals are on holidays - volumes were way down and in general I think the market doesn't have much further to move...... Just my opinion however, consult your financial adviser for some advice if required, yada yada yada.......... There is value out there in the market, but it is getting harder and harder to find IMO

Cheers
Reece

 

[happytrader]

Its the Santa Claus rally.

Cheers
Happytrader

I guess it doesn't really matter why it happens. Rather it is that we remember to keep an eye out and use this recurring phenomena to make money.

 

[barney]

I guess it doesn't really matter why it happens. Rather it is that we remember to keep an eye out and use this recurring phenomena to make money.

The last three years in graph form shows the recurrence ..... I can't help it; I like posting graphs

 

[nizar]

I guess it doesn't really matter why it happens. Rather it is that we remember to keep an eye out and use this recurring phenomena to make money.

Exactly.
Well said.
People need to remember that there doesnt have to be reason, and it doesnt have to make sense.
Rather than looking for explanations, look for opportunity, and always remember that the market can stay irrational longer than you can stay solvent.

 

[Novski]

Very true Nizar.

However, I still think toc_bat's curiosity in trying to work out if there is a 'Christmas trend' and back it up with a logical reason which in turn would make him wiser for the future, is well worthwhile.