The upward holiday season is in effect. During the three trading days on each side of Christmas, the market rose about two-thirds of the time. If the averages have increased in the calendar year preceding this period, the odds are even higher. The first half of this seasonality has already boosted the market. The next three days are ahead. As regular readers will recall, the period from December 15e until January 9e closed higher about 70% of the time.
We’ll take a look at which ETFs performed well over the coming week and which performed well during the six-day holiday period and through January 9th.e.
Here is a screen of the indices that have performed the best during this period. To select certain ETFs for short-term trading, the following strategy is used. The best performances in the chosen period with at least 20 years of price data are calculated and are presented below. Indices are ranked according to the percentage of periods in which prices have increased.
Best performing indices for December 24e to January 9e
From this list, stocks or ETFs are selected for their relative strength and by dynamic cycles. The latter term refers to the most active cycles that are currently generating profits.
NASDAQ is ranked second. From 24e through the 9e, the price increased more than 70% of the time for an average gain of about 1.3%. We have a choice of the Invesco QQQ Trust (QQQ) without leverage or the ProShares Ultra QQQ (QLD) with leverage (twice). The NASDAQ index rose almost 66% of the time in January for a gain of 2.2% and for the second highest expected return of any month of the year, around 1.5% . The price is expected to rise over $ 16,000 to reach new highs by the end of this strong seasonal period.
Since the beginning of December, these stocks are recommended and can still be kept until January 9.e: Apple, Microsoft, KLA Instruments, Applied Materials and Thermo Electron. In fact, Thermo Electron grew over 72% of the time on the 27e and more than 74% of the time on the 29the.