When it comes to shopping, we all know that the Christmas holiday season is the craziest time of the year. For shoppers, this is a fun time as we go all out and spare no expense when searching for the perfect gift for our loved ones.
When it comes to trading, naturally we’re always on the lookout for a promising trend that can help our portfolio perform better. That’s why over the last few years, due to the fact that the market tends to repeat certain seasonal trends, stock traders have been enjoying just as much Christmas fun when trading their favourite retail stocks.
Why all the fun? Historically, share prices have been known to often rally ahead of long weekends and major holidays like Christmas. Fundamentally speaking, as consumers tend to spend more before and over holidays, this can push up the share prices of successful companies that report strong sales during this period.
And us traders? Simply put, Christmas rallies have also been attributed to our understandable enhanced optimism and higher spirits during everyone’s favourite holiday season. In other words- when we feel happy, we’re happy to trade!
Once again, this year, the market anticipates another record-breaking shopping season with all signs pointing to strong pre and post-holiday revenues for the companies we all know and love like Disney, Amazon, Apple and others.
Can we expect another Santa Claus rally this year? No one knows. What we do know is that when investors are enjoying the season’s jollies and especially have a thorough understanding of the historical fundamental trends, they can gain an advantage when trading the stock market.
Planning on some exciting pre-holiday trading? Then prepare to be amazed by AvaTrade’s festive 12 days of Christmas celebration!
From 9th-24th December, for 12 days, 12 chosen stocks, every day a different stock, trade to get a chance to win a $100 Amazon gift card every single day*!
|09.12. 19||Monday||Coca Cola|
|10.12. 19||Tuesday||Walt Disney|