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The Effects of Holiday Stock Trading

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?  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! Holiday sales should be somewhat a result of what is evident in the stores.  Are people out spending money? Are the parking lots full?  Is the news-commentary oriented toward retailers having to greatly discount prices to get people in the store or are they commenting on how the crowds are trampling each other to get into the stores the day after Thanksgiving?  Observe the obvious!  If the  often found ?fear? factor does not seem to be prevalent in the news media, or the foreign political policies appear to be more important than the domestic economic issues, use the holiday stock trading as an opportunity to discover which sectors will be best benefited by a slow and progressive economic atmosphere.  Use candlestick signals and patterns to identify the reoccurring opportunities that are created by the continuation of investor confidence.


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