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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 )
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.