Search Investopedia

Santa Claus Rally

Filed Under » ,
Dictionary Says

Definition of 'Santa Claus Rally'

A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations for the Santa Claus Rally phenomenon, including tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week.
Investopedia Says

Investopedia explains 'Santa Claus Rally'

Many consider the Santa Claus rally to be a result of people buying stocks in anticipation of the rise in stock prices during the month of January, otherwise known as the January effect.

Related Definitions

  •

    January Effect

    A general increase in stock prices during the month of January. This rally is generally attributed to an increase in buying, which follows the drop in price that typically happens in ...
    Read More »

  • Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For example, in Christmas of 1995, Boston received snow and the ...
    Read More »

  • Rally

    A period of sustained increases in the prices of stocks, bonds or indexes. This type of price movement can happen during either a bull or a bear market, when it is known as either a bull ...
    Read More »

    • Technical Rally

      An upward movement in a security's price following a declining trend. The movement is caused by technical as opposed to fundamental factors affecting sentiment.
      Read More »

    • Behavioral Finance

      A field of finance that proposes psychology-based theories to explain stock market anomalies. Within behavioral finance, it is assumed that the information structure and the ...
      Read More »

    • Christmas Club

      A short-term savings account that usually pays out the full account balance to its account holders once each year, right before Christmas. Christmas club accounts pay depositors monthly ...
      Read More »

    • Christmas Tree

      An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at different strike prices. When drawn structurally, the strike ...
      Read More »

    • Elves

      A slang term for the technical analysts who appeared on the PBS television show "Wall Street Week", which aired from 1970 to 2005. The elves attempted to predict the direction of the ...
      Read More »

    • Sucker Rally

      A temporary rise in a specific stock or the market as a whole. A sucker rally occurs with little fundamental information to back the movement in price. This rally may continue just long ...
      Read More »

    • Tortoise Rally

      A slow-and-steady appreciation of financial market prices over time. A tortoise rally contrasts with more volatile rallies where prices rise and fall quickly while maintaining a general ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions