Close, But Not Quite Time for Santa to Light Up

The seasonal "Santa Claus Rally" in the stock market is a phrase you will hear quite a bit of in the coming weeks, if you have not already. According to Sentimentrader, via @ukarlewitz on Twitter, however, the coming week in the market has less-than-bullish seasonality, seen on the graph below. Trying to trade seasonality is always a controversial topic. I suggest not formulating a trade entirely based on a seasonal thesis. However, it may be on factor, of many, which is relevant to consider. Here, some seasonal weakness may catch many off-guard next week and keep bulls honest before a potential Santa Claus rally into Christmas.