The Effects of Holiday Stock Trading
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. The analysis of candlestick charts
The analysis of candlestick chartsmakes this evaluation easy
Are Christmas sales weak or strong? Are shipping companies nearing full capacity?
It is High-Tech selling well this year? These are all questions that can be better answered if you have access to large research resources. However, most investors do not have the time or economic resources to get the advantage of extensive research and survey capabilities. But it can be assumed that the big money ( smart money ) does have those capabilities. How can an investor best take advantage of their research? The candlestick signals reveal what investor sentiment is doing. The ramifications of another year?s economic growth can be much more clearly visualized during the holiday stock trading results. The candlestick signals will reveal what the smart investors are projecting for future results of sectors/stocks. What may be obvious or unobvious, to the average Joe on the street, has been well thought out by the big money investors. Their thought processes will be revealed with candlestick signals in specific sectors.
Observe the obvious!