MILLBURN, N.J. (Stockpickr) -- After a horrible September, the markets delivered a glorious October, only to have the goblins ruin November, which turned out to be a big turkey.
So will we see a Santa Claus Rally at the end of the year? And if so, what stocks should we be buying here?
First, let's look at some of the pertinent statistics that may help answer our questions. (I use my own proprietary statistics that quantify and analyze the S&P 500 from 1950 through 2010.)
>>4 Beaten-Down Stocks Poised for Rebounds Have there been other years in which September was down, October was up and November was down for the S&P 500? Certainly. That occurred seven times, followed by both up and down Decembers: in 1956, when the S&P 500 rose 3.52% in December; in 1963, up 2.44% in December; in 1969, down 1.87% in December; in 1974, down -2.02%; in 1991, up 11.16%; in 1993, up 1.01%; and in 1994 up 1.23% in December. That average December return was a 1.78% gain. So yes, there is most definitely some statistical evidence that a rally could occur this December. With that in mind, here are several stocks and strategies for a 2011 Santa Claus Rally.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV