. Steven Beley's Market Menagerie

The stock markets are one of the most changeable entities I know. There is know rhyme or reason why the stock prices go the way the go. There are two shown on the screen and the others include Buy on the rumor sell on the news and A Dead Cat Bounce.

Historically, the stock market takes off the last four days of the year and into the first two of the New Year. On average, this "Santa Claus Rally" is good for 1.7% on the S&P 500, according to the Stock Trader's Almanac.

The Truth

If the economy is soaring and the Fed has just raised interest rates at it's just before it's Christmas meeting (Tuesday before Christmas) more then the market is willing to tolerate. There is a good chance that stocks will come tumbling down. You are a gambler.

According to the unconventional but surprisingly accurate indicator, stocks rise when a team from the National Football Conference or one from the pre-1970 National Football League wins the Super Bowl. It's worked for 26 of 29 Super Bowls. WOW!!! What a record according to the Motley Fool.

If it is rumored that a company might have a good earnings report the stock will go up because people are buying. Then the news comes out as expected and since all the buyers are now sellers because there is know other reason to hold the stock in the short term.

Every once in a while I will here this saying on CNBC but never the meaning. It means when a companies stock or the market as a whole is headed for a fall, the stock goes up a little an then heads straight down for a prolonged period of time or in short even a dead cat bounces.

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