December is a festive month, and also full of joys. Thanksgiving and Christmas not only bring about joyful days, but also strong consuming power, especially in retail sales. Among the 12 months of a year, December has the best performance on average. Because of the end of a year, normally people would have a review of the past and an outlook of the coming.
Santa Claus Rally is aiming at last 5 trading days Christmas and first 2 after New Year. It has a function of cooling down first and planning for the coming year. In trading it is full of hopes, but actually it is a cooling down period no matter for trading or not.
In mid-November, market retreated after passing the Pay and Performance Scheme of Elon Musk and the nice financial report of NVDA. People sell on good news because it had no prominent retreat after the Liberation Day. On Nov 12th, the Fear and Greed Index once touched the low of 9 points in intraday chart and I said normally rebound will come within a few weeks, which denotes it is the best time for buying.
Practically, a lot of stocks are quite cheap but capital is also very limited. Few people can be as Warren Buffet holding 31% cash before the launching out of Gemini 3 of GOOG. Never too late to mend, nor too late to learn. If you use this cooling down period to study the recommendations of AI in the past few months, and drop down the notes no matter on the chart or elsewhere to form your own market diary. Bright and Beautiful Days waiting for you.