The short-term prospects for the stock market continue to be gloomy as a reversal of course in predicted only at around Christmas, according to Jim Cramer of CNBC. The host of the popular show ‘Mad Money’ was relying on charts shared by Larry Williams, the renowned technical analyst. He spoke of the Santa Claus rally in the last days of the year.
The Santa Claus rally is not expected before the Christmas season. Cramer shared that the historical data and the charts were interpreted by Williams and point towards a revival only during the festive week. He said that there could be a further leg down after Black Friday before the market stabilizes on its own
When asked about the opportunity, he said that Larry has given sufficient evidence that Black Friday is high time that we start to buy into stocks as they are at bargain prices.
Williams drew a conclusion about the Santa Claus rally by relying on two vital bits of information, says Cramer. While the first is about the seasonal trends, which relies on the surmise that the last month is normally a period of strong revival, especially the Santa Claus rally around Christmas.
Cramer Says That The Best Time To Benefit From The Santa Claus Rally Was To Enter At Around December 15
Cramer says that for those who rely on seasonal trends, the best time to enter the market and benefit from the Santa Claus rally is on December 15. This will help catch the upward trend during the end of the month.
But the analysis by Williams concluded that issues were more complex than that. Cramer says that the present market lacks sufficient breadth at the moment to fully support a Santa Claus rally.
Cramer says that Williams has foretold the sell-offs, and it has followed the trend predicted by Williams, but till the indicators, we might have to wait for a Santa Claus rally.