This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. PHEMEX is also celebrating their two year anniversary by sharing 2 BTC with 10 lucky winners to help them realize their dreams: https://anniversary.phemex.com/#dream-sectionIt’s almost Christmas. We are not here to exchange gifts. We are here to trade (and maybe exchange crypto). So what's in store for markets?A recent survey conducted by BlockFi found that 1 in 10 Americans would give crypto to their loved ones as a holiday gift. This could swell into a sizeable amount of retail bidding leading up to Christmas. The phenomenon is new, so there really is no way to predict the strength of Christmas buying. It makes for a fun story, but I doubt it will significantly move the needle.Aside from crypto gifting, you have probably heard the term “Santa Claus Rally,” used to describe price action in the stock market around Christmas. I borrowed some info from Investopedia:A Santa Claus rally describes a sustained increase in the stock market that occurs in the last week of December through the first two trading days in January. There are numerous explanations for the causes of a Santa Claus rally including tax considerations, a general feeling of optimism and happiness on Wall Street, and the investing of holiday bonuses. Another theory is that some very large institutional investors, a number of whom are more sophisticated and pessimistic, tend to go on vacation at this time leaving the market to retail investors, who tend to be more bullish.Here are the key takeaways.The Santa Claus Rally refers to the tendency for the stock market to rally over the last weeks of December into the New Year.Several theories exist for its existence, including increased holiday shopping, optimism fueled by the holiday spirit, or institutional investors settling their books before going on vacation.Regardless of the reason, more than two-thirds of the Decembers dating back to the 1960s have resulted in positive gains for shareholders.While not guaranteed, stocks have tended to rally during the final five trading sessions of the year through the first two trading days of the New Year. The S&P 500 gained an average of 1.3% during the seven-trading day session since 1969, according to the Stock Trader’s Almanac.Still, as with many market anomalies, it may just be random and there is no guarantee it will continue into the future.According to Barrons, trading stocks in the period after Christmas is not recommended. There is little upside. Moreover, if there is no rally, that can be a sign of a bear market in the future. In the final weeks of 1999 and 2007, stock prices rose rapidly but only to be followed by bear markets. A better strategy is to maintain a long-term investment strategy and not be tempted by the promise of Santa Claus rallies or January effects.Keep an eye on the markets over the coming days and see if Santa Claus hangs out for a while.There will be no chart live stream today, I am enjoying a vacation on an island with barely any internet connection. Take the day off, hug a loved one and enjoy the holidays.In This Issue:Santa Claus Rally?Ethereum Becomes An Engine Of Economic Activity - IntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsIs Ethereum An Altcoin?Crypto.com Releases 2022 PredictionsMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #397 - Santa Claus Rally?
The Wolf Den #397 - Santa Claus Rally?
The Wolf Den #397 - Santa Claus Rally?
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. PHEMEX is also celebrating their two year anniversary by sharing 2 BTC with 10 lucky winners to help them realize their dreams: https://anniversary.phemex.com/#dream-sectionIt’s almost Christmas. We are not here to exchange gifts. We are here to trade (and maybe exchange crypto). So what's in store for markets?A recent survey conducted by BlockFi found that 1 in 10 Americans would give crypto to their loved ones as a holiday gift. This could swell into a sizeable amount of retail bidding leading up to Christmas. The phenomenon is new, so there really is no way to predict the strength of Christmas buying. It makes for a fun story, but I doubt it will significantly move the needle.Aside from crypto gifting, you have probably heard the term “Santa Claus Rally,” used to describe price action in the stock market around Christmas. I borrowed some info from Investopedia:A Santa Claus rally describes a sustained increase in the stock market that occurs in the last week of December through the first two trading days in January. There are numerous explanations for the causes of a Santa Claus rally including tax considerations, a general feeling of optimism and happiness on Wall Street, and the investing of holiday bonuses. Another theory is that some very large institutional investors, a number of whom are more sophisticated and pessimistic, tend to go on vacation at this time leaving the market to retail investors, who tend to be more bullish.Here are the key takeaways.The Santa Claus Rally refers to the tendency for the stock market to rally over the last weeks of December into the New Year.Several theories exist for its existence, including increased holiday shopping, optimism fueled by the holiday spirit, or institutional investors settling their books before going on vacation.Regardless of the reason, more than two-thirds of the Decembers dating back to the 1960s have resulted in positive gains for shareholders.While not guaranteed, stocks have tended to rally during the final five trading sessions of the year through the first two trading days of the New Year. The S&P 500 gained an average of 1.3% during the seven-trading day session since 1969, according to the Stock Trader’s Almanac.Still, as with many market anomalies, it may just be random and there is no guarantee it will continue into the future.According to Barrons, trading stocks in the period after Christmas is not recommended. There is little upside. Moreover, if there is no rally, that can be a sign of a bear market in the future. In the final weeks of 1999 and 2007, stock prices rose rapidly but only to be followed by bear markets. A better strategy is to maintain a long-term investment strategy and not be tempted by the promise of Santa Claus rallies or January effects.Keep an eye on the markets over the coming days and see if Santa Claus hangs out for a while.There will be no chart live stream today, I am enjoying a vacation on an island with barely any internet connection. Take the day off, hug a loved one and enjoy the holidays.In This Issue:Santa Claus Rally?Ethereum Becomes An Engine Of Economic Activity - IntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsIs Ethereum An Altcoin?Crypto.com Releases 2022 PredictionsMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO