Stock Market Started Holiday Week Green

Will There Be a Santa Rally This Year?

In partnership with

Hey Market Timer!

The Future of Shopping? AI + Actual Humans.

AI has changed how consumers shop by speeding up research. But one thing hasn’t changed: shoppers still trust people more than AI.

Levanta’s new Affiliate 3.0 Consumer Report reveals a major shift in how shoppers blend AI tools with human influence. Consumers use AI to explore options, but when it comes time to buy, they still turn to creators, communities, and real experiences to validate their decisions.

The data shows:

  • Only 10% of shoppers buy through AI-recommended links

  • 87% discover products through creators, blogs, or communities they trust

  • Human sources like reviews and creators rank higher in trust than AI recommendations

The most effective brands are combining AI discovery with authentic human influence to drive measurable conversions.

Affiliate marketing isn’t being replaced by AI, it’s being amplified by it.

Today we will be covering...

  • Today, we will discuss the Santa Claus rally phenomenon.

Santa Claus Rally: Holiday Cheer or Market Magic? 

  • As we wrap up 2025, let's dive into the Santa Claus Rally—a seasonal stock market phenomenon that's delivered gifts to investors much more often than not. Here's a quick summary:

    What It Is: The rally spans the last five trading days of December plus the first two of January (7 days total). It's a short-term boost often kicking in amid holiday optimism, low volume, and year-end portfolio tweaks. 

    Historical Stats (S&P 500 since 1950): 

    • Average return: +1.3% over the period—way above typical 7-day gains. 

    • Positive hit rate: 76–79% of the time (depending on the dataset). 

    • Fun fact: When it doesn't happen, the following year often sees weaker returns (bearish omen in ~70% of cases). 

    uk.finance.yahoo.com

    Why It Happens: Tax-loss harvesting wraps up, bonuses get invested, and holiday sentiment lifts spirits. But it's not guaranteed—volatility or macro shocks (like 2022's miss) can steal the show.

    The chart below represents the Santa Claus rally by year from 1950 to 2021.

*Stats via historical analyses; past performance isn't a future guarantee.

BraVoCycles on X

  • If you are interested in financial markets, you are missing out by not following me on X, as I do not have enough space in the newsletter to post all my research, which I try to share on X. Additionally, I frequently post important real-time updates between newsletters.

What’s Next for the Stock Market?

  • A relatively quiet, low-volume trading day on Monday, as expected in a holiday week.

  • There are several more days of a strong positive seasonality. Just keep in mind that seasonality does not always work. The famous “Sell in May and Go Away” did not work this year. . .

To continue reading about what’s next for the stock market, US Markets, Elliott Wave and Technical analysis of US Markets, volatility, as well as commodities, bonds, forex, currencies and crypto upgrade to Premium Pro. . .

Make Newsletter Magic in Just Minutes

Your readers want great content. You want growth and revenue. beehiiv gives you both. With stunning posts, a website that actually converts, and every monetization tool already baked in, beehiiv is the all-in-one platform for builders. Get started for free, no credit card required.

Have a question? Want to leave us feedback?

Contact us at: [email protected]

Read our Disclaimer

Subscribe to the Pro Tier to read the rest.

Become a paying subscriber of Market Twists & Turns - Pro to get access to the rest of this post and other subscriber-only content.

Already a paying subscriber? Sign In.

A subscription gets you:

  • • In-depth analysis & analysis multiple times/week on SPX, NDX, DJI, RUT, VIX/VXX, plus
  • • Bonds, commodities, forex, international markets, select stocks, & EFTs
  • • Technical & Elliott Wave Analysis (EWA)
  • • Price projections using Cycle methods and Fibonacci levels
  • • Ad-free & downloadable pdf version

Reply

or to participate.