Is Santa Claus coming to town?

A Santa Claus Rally refers to the tendency for the stock market to trend up in the last week of December into the New Year. Several theories exist for its existence, including holiday shopping, enthusiasm fueled by the holiday spirit, and professional investment managers adjusting portfolios before going on vacation.

From the look of today’s price action, Santa came early. For me, it’s all about math and the status of the trend. U.S. stocks continue their uptrend with a volatility expansion.

volatlity expansion

How much more momentum the uptrend will have may be near exhaustion.

Considering the price trend of the stock index is already trended above the top end of the range, it will take a strong thrust of buying enthusiasm to drive it more than 1-2% higher from here.

So, this may be about it for 2019 gains for this broad index.

Only time will tell…

Mike Shell is the Founder and Chief Investment Officer of Shell Capital Management, LLC, and the portfolio manager of ASYMMETRY® Global Tactical.

Mike Shell and Shell Capital Management, LLC is a registered investment advisor focused on asymmetric risk-reward and absolute return strategies and provides investment advice and portfolio management only to clients with a signed and executed investment management agreement. The observations shared on this website are for general information only and should not be construed as advice to buy or sell any security. Securities reflected are not intended to represent any client holdings or any recommendations made by the firm. Any opinions expressed may change as subsequent conditions change.  Do not make any investment decisions based on such information as it is subject to change. Investing involves risk, including the potential loss of principal an investor must be willing to bear. Past performance is no guarantee of future results. All information and data are deemed reliable but is not guaranteed and should be independently verified. The presence of this website on the Internet shall in no direct or indirect way raise an implication that Shell Capital Management, LLC is offering to sell or soliciting to sell advisory services to residents of any state in which the firm is not registered as an investment advisor. The views and opinions expressed in ASYMMETRY® Observations are those of the authors and do not necessarily reflect a position of  Shell Capital Management, LLC. The use of this website is subject to its terms and conditions.

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