MAYA_
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Bullish
🇺🇸 U.S. Stocks: Pre-Christmas Slumber and Market Thinning
U.S. stock markets typically enter a "pre-Christmas slumber" phase before Christmas. This means that trading activity and volatility in the markets decrease significantly as the holiday season approaches.
Why: Many large institutional investors (such as fund managers) and individual traders take their year-end vacations. As a result, the volume of buying and selling in the market decreases, making the market relatively quiet and less active.
Analysts describe this as "thinning," which refers to a decrease in liquidity in the market.
Impact: Low trading volume makes it easier for traders to have a large impact on prices. Even small transactions can unexpectedly cause large changes in stock prices, causing the market to become unstable or weak.
"Santa Claus Rally": Although the market is quiet, at the end of this period, especially the last five days of December and the first two days of the New Year, historical data shows a trend of rising stock prices, which is known as the "Santa Claus Rally".
In short, it is a seasonal phenomenon where the market becomes sluggish and weak due to the absence of large investors.
#Binance @CZ @Trend Coin @wiki002 @Will-123 PORTAL LATINO @ryad alhmydy @NVD Insights @mhzr $BTC $ETH
U.S. stock markets typically enter a "pre-Christmas slumber" phase before Christmas. This means that trading activity and volatility in the markets decrease significantly as the holiday season approaches.
Why: Many large institutional investors (such as fund managers) and individual traders take their year-end vacations. As a result, the volume of buying and selling in the market decreases, making the market relatively quiet and less active.
Analysts describe this as "thinning," which refers to a decrease in liquidity in the market.
Impact: Low trading volume makes it easier for traders to have a large impact on prices. Even small transactions can unexpectedly cause large changes in stock prices, causing the market to become unstable or weak.
"Santa Claus Rally": Although the market is quiet, at the end of this period, especially the last five days of December and the first two days of the New Year, historical data shows a trend of rising stock prices, which is known as the "Santa Claus Rally".
In short, it is a seasonal phenomenon where the market becomes sluggish and weak due to the absence of large investors.
#Binance @CZ @Trend Coin @wiki002 @Will-123 PORTAL LATINO @ryad alhmydy @NVD Insights @mhzr $BTC $ETH
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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