As we approach Christmas Day, many traders and investors are anticipating a “Santa Claus rally” in the stock market…and with good reason.
According to a recent Forbes article (three steps on how to trade the Santa Claus rally), the S&P 500 has scored a December gain in 17 of the past 20 years.
The Dow Jones has done so in 65 of the past 100 years.
Although it obviously does not happen every year, the stock market undeniably has a history of positive returns in (the latter half of) December.
As technical momentum traders, we never place much weight purely in seasonal market trends because we focus on the performance of leading stocks and broad market volume patterns instead.
Nevertheless, be sure to check out this new stock pick video that uses our online stock screener to show you a few potential breakout stocks to buy in the coming days ($DDD, $QTWW, $THRM, and $IQNT).
View the 3-minute video below by pressing the “play” button. For best quality, view in HD full-screen mode by clicking the icon on the bottom right of the video player window.
Want to know more about how the MTG Stock Screener works? Check out the 5-minute video on this blog post.
To recap the video, our preset breakout scan is designed to find stocks trading within 20% of a 52-week high, trading sideways above their 50-day moving averages.
Further, we are looking for “cup and handle” or flat base consolidation patterns of stocks that have not yet broken out.
To learn our detailed entry strategy for swing trading stocks, be sure to view the excellent, full-length video on our stock trading video course page (registration closes on December 21).