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The Santa Claus rally is in trouble. With one day left in the trade, the S & P 500 is down 0.1% in the past six days. Fortunately, a negative Santa Claus rally period doesn't happen very often, only 12 times since 1969 — less than 25% of the time. "That is 16 out of 16 years, which includes years with recessions, like 2020," Clifton notes. The outperformance is notable: The S & P tends to be stronger by 1.3% on average.
Persons: Santa Claus, Jeff Hirsch, Tom McClellan, Hirsch, Dan Clifton, Clifton, Biden, Jason Trennert, Strategas, There's Organizations: Santa, Treasury, Bloomberg Locations: Santa, Santa Claus, U.S, Strategas, Mexico, India, Taiwan, Pakistan, Indonesia, South Africa, Tunisia
I spoke with veteran market watcher Tom McClellan, editor of the McClellan Market Report. It is seasonal factors, which are behaving almost exactly to the script. Is the market weakness mostly due to seasonal factors? That's happening right now, so that's getting cited in the news as the coincident factors but it's not really related. But that's not a good explanation anymore because farming is such a small portion of the economy, and yet the seasonal factors still work.
Persons: Tom McClellan, McClellan, we'll, that's, it's, You've, haven't, Tom Organizations: Fed Locations: California
For active traders who like to time buying and selling around seasonal events, the next few weeks are Market Timing Heaven. The volatility is encapsulated in one of the more enduring seasonal trades: Sell Rosh Hashanah (which begins at sundown Friday this year), buy Yom Kippur (Sept. 25). Traders sell positions due to seasonal weakness at the start of Rosh Hoshanah, then return to the market after Yom Kippur. The period from Yom Kippur to Passover, which starts on April 22, 2024, is traditionally an up period, good for an average gain of 6.9%. It means market timers expecting seasonal weakness for the next few weeks are also expecting seasonal strength in the fourth quarter.
Persons: Rosh Hoshanah, Jeff Hirsch, Hirsch, Tom McClellan, McClellan, Todd Sohn Organizations: Triple, Triple Witching, Federal, Traders Locations: Yom, Rosh, Yom Kippur, Strategas
After a string of up days, the old market leadership of technology and consumer discretionary is looking tired, and that is probably a good thing. Since 1950, August is the third-worst month for the S & P 500, while September is the worst month. That is "historically extreme," Todd Sohn from Strategas told me, though it is consistent with coming off major market lows. A torrid two-month rally has lifted the S & P Technology Sector (XLK) by 16%, but tech has mostly been for sale in the last few days. Still, for investors in the S & P 500, McClellan says no one should be surprised to see a summer correction in the next month or so.
Persons: Tom McClellan, Nate Geraci, Schwab, Todd Sohn, Strategas, John Murphy, Banks, Murphy, UnitedHealth, Johnson, Abbott, Ed Yardeni, McClellan Organizations: The, Growth, P Technology, Microsoft, Apple, Nasdaq, NVIDIA, Meta, Technology, Health Care
Dow theory: a primer The rules around the Dow Theory were formulated more than 120 years ago by Charles Dow himself (though he himself never used the term Dow Theory). "Dow Theory was formulated when the Dow Industrials were stuff makers, and the railroads were stuff movers," Tom McClellan, editor of the McClellan Market Report, told me. New Dow Theory also confirms a new high There have been attempts to formulate a "New Dow Theory." Tuesday, the S & P 500 closed at 4,554 (up 19% this year), and the Nasdaq closed at 14,354 (up 37% year-to-date). The S & P 500 is up 9% since May 1.
Persons: Dow, Charles Dow, Tom McClellan, McClellan, David Keller, Keller, hasn't, It's, Jeff Hirsch, Hirsch Organizations: Dow Jones, Dow Jones Transportation, Dow, Dow Theory, Dow Transports, Dow Railroads, FedEx, UPS, Nasdaq Locations: U.S, uptrends
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHere's why gold is a leading indicator for oil: The McClellan Market Report's editorTom McClellan, editor of The McClellan Market Report, joins 'The Exchange' to discuss where crude oil prices are headed, why he thinks gold is a leading indicator for oil, and more.
Persons: Tom McClellan Organizations: The
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailStock market faces collision of bullish and bearish forces, says Tom McClellanTom McClellan, of The McClellan Market Report, joins 'Closing Bell Overtime' to offer historical insights into present market activity, signals of market bullishness, and looking at taxes as a percentage of GDP.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with The McClellan Market Report's Tom McClellanTom McClellan, The McClellan Market Report, joins 'Power Lunch' to discuss the setup for equity markets going into next year, if investors have already felt the effects of the Fed's rate hikes and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSeasonality might get a little traction into January, says The McClellan Market Report's Tom McClellanTom McClellan, The McClellan Market Report, joins 'Power Lunch' to discuss the setup for equity markets going into next year, if investors have already felt the effects of the Fed's rate hikes and more.
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