Santa Claus Rally! | Coffee With Markus | Episode 122
Intro: 0:00
What's Happening In The Markets: 1:37
Trades I'm Currently Taking: 6:46
What Is The Santa Claus Rally?: 18:45
Deep Dive Q&A: 25:34
Q: Is it the sell out for the end of the year? 29:02
Q: I know your feelings on IPOs, what about SPACs? 30:02
Q: Can PowerX take a ticker not in the scanner and give you a report on whether it makes sense to invest? 35:10
Q: Is it ok to exit the rest of AM before reaching profit target? 38:26
The markets looked good this morning but there seems to be a pullback. The DJI down 0.25% & The SPX also down slightly, with the NDX still holding strong.
The news about the vaccine from Pfizer being delivered to 20 million people over the next few days, and there seems to be progress with news for a stimulus package.
The big news today is fear that we may actually shut down the economy due to rising cases of the virus. Germany and London are already shutting down, with indoor dining already banned in NYC with the mayor stating residents should be ready for a full shut down.
There were 2 big IPOs last week for DASH & ABNB. I recommend staying away from these for now as they are selling off.
How am I trading this? I'm currently trading two strategies: The PowerX Strategy which takes advantage of quick moves to the upside/downside, & The Wheel Strategy is used for a sideways trending market.
The PowerX Optimizer software I use finds stocks based on 3 criteria:
1) No gaps
2) Nice upward or downwards trends
3) How the stock would have performed over the last year if I had been using the PowerX Strategy.
Trades I'm taking with the PowerX Strategy: 7:15
Trades I'm taking with The Wheel Strategy: 11:14
What is a Santa Claus Rally?
The last 5 trading days in December, & the first 2 trading days in January. This 7 day period, since 1969, it seemed that 77% of the time, the markets move higher.
What causes it?
1) Holiday shopping.
2) People get bonuses & invest some of it in the stock market
3) Tax reasons. People sell losing positions so they can deduct them from their winnings. When they sell these positions, this frees up cash.
How can you take advantage of this?
- It "only" works 77% of the time. In September of 2018, there was a significant move down at the end of the year.
- It doesn't work for every stock.
What am I doing?
I trade what I see, not what I think. During these 7 days, I usually take off.
Recommended links and playlists.
Wheel Playlist: [ Ссылка ]
(Newsletters) How to start your trading day with an edge: [ Ссылка ]
Why you should use a simulator: [ Ссылка ]
Best stock market simulator: [ Ссылка ]?
#SantaClausRally #StockMarketHolidays2020 #EndOfYearMarketRally
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📺 Watch My Daily Trading Routine that takes me less than 15 minutes a day: [ Ссылка ]
📕Get a FREE Hardback Copy Of My New Book “The Wheel Options Trading Strategy”: [ Ссылка ]
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📈 TradingView is my favorite charting platform. I use the Pro Version: [ Ссылка ]
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Santa Claus Rally!
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