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The Santa Claus Rally: What Day Traders Should Know

The holiday season is often associated with joy, goodwill, and, for day traders, the infamous Santa Claus Rally. But what exactly is this rally, and why does it matter to day traders?

The term, Santa Claus Rally is used to describe a notable increase in stock market prices that typically occurs in the final trading days of December, usually between Christmas and New Year's Day. This phenomenon is characterized by a surge in market performance, leading to positive returns for investors.