'Tis the Season to Be Bullish

While sentiment surveys show that investors are more bullish now than they have been in a few years, looking at the S&P 500's seasonal trading patterns during the last week of the year shows that they have good reason to be.  Over the last five trading days of the year, the S&P 500 has historically averaged gains on each day for a total five-day gain of 1.24%, which is not bad for a week's worth of work.  Clearly, the most impressive day of the five-day stretch is the second to last trading day of the year where the S&P 500 has averaged a one day gain of 0.57% with positive returns 74.4% of the time!

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Comments

[Edward]

The markets will weaken into year end, your analysis fails to factor in what the markets has done leading into the last week.

[Edward]

I guess you elected not to post my comment yesterday warning about last week of December when we lead strong into Christmas. You are feeding herd information, which is very deceptive. Shame on you for censuring my comment because it did not agree with your bias.

[Bespoke]

Edward, we didn't elect to do anything. Unfortunately, our site is inundated with so much spam that we have to filter through all the spam before we can post the actual messages. It causes a delay in the posting of legitimate comments, but it beats the alternative.

But back to your original comment, we only posted the facts, and provided no opinion whatsoever. Where is your analysis regarding years when the market is up leading up to the last week that proves otherwise?