Holiday season market indicators - "Santa Claus Rally" and "The first Date Indicator". Table of Contents
There are numerous financial indicators that investors use to make decisions.
Some of them, such as GDP, FOMC meetings and employment rates, are commonly used, while others are viewed as… well, let’s go with ‘unusual’, shall we?
The first date indicator
We’ve already discussed the trash index, the hemline index and the Olympic indicator and have mentioned the Big Mac index on several occasions.
Today, We would like to mention an indicator that might fit the Holiday Season.
It’s called “the first date indicator” and here is the gist…
What is The first date indicator?
The huge online dating site “Match” released interesting data regarding site activities.
It pointed out that during financial crisis, the site’s activity goes up.
Now you might think that when the going gets tough, folks will opt for less dating because, well, dating costs money, but the data suggests otherwise.
Match’s assumption (speculation is more like it) was that depression over money-issues pushed individuals to seek company.
Is the first date indicator real?
Needless to say, a few trends from one dating site are hardly enough to prove anything, so we really don’t suggest you start mapping dates when you manage your portfolio.
However, some people still turn to less-familiar indicators when trading, and it’s good to know what’s out there, even if you prefer to follow the more mainstream indicators.
Follow the trend and Invest online
Feeling excited yet?
We have so many bonus promotions for online investors.
Ger your bonus for the holiday season, and start trading Forex online by following the trend.
If you want to learn more about financial indicators and how they’re used in fundamental analysis, visit the XM’s Education Center.
Will There Be a Santa Claus Rally in 2020?
Jingle bells, jingle bells, jingle all the way… yep – the Holiday Season is here.
For stores this means Black Friday, Cyber Monday, the Chinese bachelor’s day and then just plain good old shopping, but for global markets this season often brings what is commonly known as ‘Santa Claus Rally’.
What’s that, you ask?
We were just getting to it.
What is Santa Claus Rally?
This phenomenon is a surge in the price of many shares which usually takes place between Christmas and New Year’s Day.
It’s sometimes also referred to as the “December Affect”.
Many people have attempted to explain it, mentioning Christmas bonuses, tax and accounting reasons, general optimism and many other factors.
Some people have also explains the Santa Rally by pointing out that investors might be expecting the so called “January Effect” and buying shares in preparation – or rather in speculation.
Is Santa Claus Rally real?
This phenomenon was first mentioned by Yale Hirsch in his book “Stock Trader’s Almanac”, back in 1972.
Is it a fact and always happens? Of course not.
Can anyone say for sure what causes it? Again, the answer is no.
Is it a self-fulfilling prophecy when it does happens? Maybe.
In any event, some people believe this theory and are now waiting to see if there is a Santa Claus Rally in 2016.
The real question is if we can even notice it.
There’s the impact of the so-called ‘Trump Bump’ caused by the US election, there is the aftermath of Black Friday and Cyber Sunday, there is the various elections in the EU.
Investors certainly have a lot of factors to consider.
What will December 2019 look like? All bets are off.
Follow the internet’s trend
If you were wondering what people had on their minds over the past ear, Google has the answer. Well… kind of.
Why should you care, you ask?
Well, you actually shouldn’t – all of this is in the past now, water under the bridge, if you like.
We do use this opportunity though to remind you that while there are charts and numbers and calculations and major events and market analysis, the market is also moved by people, and what interests these people matters.
The truth is that market events are far less significant than how people react to them, and those feelings and reactions can be seen in market trends.
Stay informed, try and assess how people will react and use those assessments when making trading decisions.