Navigating the Santa Rally: Stock Market's Record Highs and Options Hedge

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Source: Markets Insider
Navigating the Santa Rally: Stock Market's Record Highs and Options Hedge
Photo: Markets Insider
TL;DR Summary

The stock market has a good chance of hitting record highs next week due to the Santa Claus rally, a seven-day trading window that historically sees stocks rise 79% of the time with an average gain of over 1%. The rally, which begins on December 22 and ends on January 3, has been a reliable indicator of positive market performance. If the rally fails to materialize, it could be a warning sign for a weak start to the coming year.

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