We’re smack dab in the middle of one of the hottest market rallies in a while…
But it might come as a surprise to you that the December rally in the market is pretty common — it’s called the Santa Claus rally.
Now, I might not have a beard as white as Santa’s just yet, but I’m working on it…
And today I’m giving you the low down on the Santa Claus rally and how you can take advantage of it.
I believe the Santa Claus rally we’re experiencing now is a sign of even more exciting things to come in 2024.
So buckle up and get ready for the ride with these two tips…
As the S&P 500 hits new heights — 2024 is setting up to be a micro-cap paradise.
See the one thing that can help you capitalize here.
The Santa Claus Rally Unwrapped
What exactly is the Santa Claus rally?
Well, stocks, especially in the last decade, tend to experience end-of-year runs.
Whether it’s because people are stuck inside due to a colder climate or because they’re on holiday…
The end-of-year rally brings in a sense of FOMO (Fear of Missing Out) and emotional trading.
Traders remember the highs from previous years and don’t want to miss out on the action…
That FOMO coupled with the holiday season where more people are off work can create explosive buying.
So the Santa Claus rally has become a trend as people expect a surge in the market towards the end of the year.
What You Can Do To Ride The Wave
Believe it or not, there’s a pattern to this madness…
The winter season, especially December to March, tends to be the hottest for low-priced stocks.
We’re seeing unprecedented volume, with low-float stocks trading tens of millions of shares.
Even the large caps names are having incredible runs…
So I’m going to continue to look for those swing trade opportunities with the help of our IRIS AI swing trade analyzer.
You can get it here and join my weekly live strategy sessions where we pick a top watch each week.
Next, look for stocks that are beaten down…
When stocks become oversold and pressured by short sellers, they have more potential to pop.
Look at C4 Therapeutics, Inc. (NASDAQ: CCCC)…
The stock was in a downtrend for an entire year. Then when the company announced a collaboration with Merck, the stock skyrocketed from $1.18 before the news to a high of $8.30.
CCCC chart: 1-year, daily candle — courtesy of StocksToTrade.com
Altimmune, Inc. (NASDAQ: ALT) is another example of a stock that’s beaten down and bouncing back…
It’s even close to a multi-day breakout and filling that nasty gap on the chart.
ALT chart: 1-year, daily candle — courtesy of StocksToTrade.com
This is the power of the beaten-down chart. Once these stocks pop they can run for multiple days.
This is the Santa Claus rally in full effect…
So look for swing trades in mid to large-cap stocks … And look for beaten-down penny stock charts to help you take advantage of the rally.
Don’t let the naysayers distract you with talk of crashes …
This isn’t the time to be on the sidelines — it’s the time to study, learn, and position yourself for success.
I think the momentum is just getting started. We’re in for an exciting ride, and 2024 is set to be a vertical climb.
My boy Matt Monaco feels the same way…
He’s already made nearly $2 million in trading profits. And he thinks next year could be a banger…
See how he plans to make the most out of the opportunities here.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade