January 27, 2023

Rally

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A rally in the stock market is a period of sustained increases in the prices of stocks, bonds or indexes.

This type of price movement can happen during either a bull or a bear market, when it is known as either a bull market rally or a bear market rally, respectively. However, a rally will typically follow a period of flat or declining prices.

In Forex Trading it is a substantial shift towards higher prices for a currency, compared to another currency or a basket of currencies.

Does Santa Claus Rally really exist?

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Yes, it does!  A santa claus rally is a surge in the price of stocks that often occurs in the last week of December through the first two trading days in January, ahead of a healthier market. There are numerous explanations for the Santa Claus Rally phenomenon, including tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week.

Sources: Investopedia, Wikipedia

PLEASE NOTE The information above is not investment advice.