This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

[video] S&P 500 Could Hit 1850 During Santa Claus Rally

Stocks in this article: SPY

The video this transcript is based on appeared on December 26.

NEW YORK ( TheStreet) -- Keith Bliss, senior vice president at Cuttone & Co. says with three trading days left in 2013, momentum from the Santa Claus rally could move the S&P 500 past 1850.

VIDEO TRANSCRIPT:

The markets today are trading up on what is lighter holiday season lighter volume but the markets are in a momentum phase right now where we certainly expect them to trade higher. Based upon the price action that we've seen last week and what we got earlier this week it's not, it would not be surprising to me if we see the S&P 500 trade all the way up to 1850. Remarkably in some of our quantitative models and technical models we don't see the S&P 500 overbought until it gets up about 1860. So even though we've got only three trading days left in the year we certainly can see the market trade up a couple of percentage points on lower volume and the moves tend to be exaggerated.  When you have lower volume like this you could possibly get to our level.

Starting out at the beginning of 2014 I would expect that same continuation of the momentum because you have what's called the January effect, so right now we're in the Santa Claus rally which is that week of trading in between Christmas and New Years when people anticipate the January effect. The January effect is new money that now will be coming into the equity markets. Of all the asset classes in the world you could invest in right now the one that's performed the best in 2013 is US equities. So I would imagine their retail monies as well as institutional money that's been sitting on the sidelines riding into the end of the year will be coming into the market at the beginning of January to keep the rally going for some time.

Written by Keith Bliss in New York.

This article was written by a staff member of TheStreet.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs