US Stock Market's yearly free lunch is being served around Christmas

US Stock Market's yearly free lunch is being served around Christmas

KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  The only free lunch being served on Wall Street (The Stock Market) is around Christmas time. It is the worst performing stocks that are being dumped by Fund Managers and Investors in December. Here a list of the 25 worst preforming stocks in 2022. Maybe there is a bargain buy for a sweet little bounce in to 2023


According to Stock Trader’s Almanac the only free lunch being served on Wall Street (The Stock Market) is around Christmas time.

When a year draws to an end most Fund Managers and Investors will get rid of under-performing stocks usually for tax-purposes. Cleaning House so to speak. 
That means that they will dump them before they go on Christmas Holiday so they do not appear on the books by year-end.

Statistics made by Stock Trader’s Almanac show that stocks selling at their 52 weeks low around mid-December tend to outperform the market by mid-February the following year.
According to Stock Trader’s Almanac the average gain of these stocks have been approx. 13% from mid-December to mid-February. 

Below is a list of the 25 worst performing stocks in the S&P 500 in 2022 and a list of the 25 worst performing stocks of the entire US Stock Market 
Due to license reasons these stocks are not derived from Stock Trader’s Almanac list of stocks they issue every year to Subscribers. However, there is a great likelihood most of the 2x25 stocks listed below are on their list.

Please note: T
here might have been a good reason fundamentally for these stocks to have underperformed. An under-performance they might carry in to the new year.

It should be noted that there is no guarantee these Stocks will outperform the market the next couple of weeks and until mid-February. Bottom Fishing and Bargain Hunting are dangerous sports. Keep your stops close and be disciplined.

Best and worst performing Stocks 2022

 

 

Source: Statmuse.com
Source: Statmuse.com

On SaxoTrader you can also find the worst performing Sector and Industry ETF’s
Below image is from my watchlist of ETF’s. Disregard the Leveraged EFT’s (e.g., Bull 3X ETF, Ultra ETF’s and so on)

It should be noted there is no guarantee of these ETF’s will outperform the market the next couple of weeks.

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