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 TSX60 Seasonalities
TSX60 Index Seasonalities: Waiting for the Santa Claus Rally ?
​November 16 ( From TradingView )

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TSX60 Index Seasonalities: Waiting for the Santa Claus Rally ? $TSX #Trading #Canada #investing #tsx60  #Seasonalities 
Daily Chart - Seasonalities - Daily Performance in % of TSX60 Index - Average of the past 5 and 10 years
December 1st pegged at 100

.( See chart below )

The Situation

​​December Market Seasonals (TSX60 Index)

​​The Month of December is also very special in terms of Seasonalities
​as the whole ​Market is more Choppy than usual and most are waiting
for ​the usual bullish trend called the Santa Claus Rally.

But before it happen, usually ​​​the Seasonalities in December starts with a slow ​​corrective pattern til December 15 ( according to the average past historical behavior of the past 5 and 10 years on the TSX60 Index ) as shown by the chart below.​

​​From a bottom reached around ​December 15, the TSX60 Index then resume ​uptrend til month end with an average return of +2.8% over the past 10 years.​ The Trade Pattern is to usually continue at the beginning of January know as the January effect.

In fact, it gather a stronger bullish behavior after Christmas​​ so wondering why they call it the Santa Claus Rally...​​ This move is generally compounded because seasoned traders know about ​this seasonal movement and also buy the market ​to take advantage of this at times, especially this year with the TSX60 poor performance.

As written by Cory Mitchell: ​​Seasonality is a tool to be used in conjunction with other technical signals; it typically isn't used as a trade signal on its own. It does help isolate times that may be more favorable for buying or selling though.