Coming Week: Santa Baby

Though trading will be light in the coming week, Wall Street watchers are hoping that a Santa Claus rally will be comin' to town.

"While there is a growing uneasiness of late, I expect the markets to trend higher next week in a Santa Claus rally as traders and investors cast their eyes to 2007," says Randy Diamond, sales trader at Miller Tabak. "Good old St. Nick would not want to ruin a nice run by leaving a lump of coal for investors."

The so-called Santa Claus rally is a jump in the price of stocks that often occurs in late December. There are numerous explanations for this phenomenon, including bonus dollars being put to work, cheerfulness around Wall Street, and a general lack of sellers. ...