How’d the Santa Claus rally go?

December 20, 2021 we published this seasonality article on the Santa Claus rally In a nutshell we looked at the last 5 trading days of the year and the first 2 trading days of the next year. We looked back over the last 7 years to see if the rally holds up.

The Dow clearly did show an average rally of over 1% during those 7 trading days.

So how did things go this Santa Claus rally?

Here’s the DIA the ETF that follows the Dow during the 7 day Santa Claus rally. It made a nice gain of 2.9%. 2 days later things turned down.