Event: Winter Solstice
The Winter Solstice marks the beginning of winter in the Northern Hemisphere typically on December 21st or the 22nd. Although, technically it can take place any time between the 20th and 23rd of December. By definition, Winter Solstice is the point at which the Earth’s axis is tilted directly away from the Sun resulting in the shortest day / longest night of the year. This astronomical definition of winter will last until the Vernal Equinox. From a meteorological point of view, it should be noted that winter begins on December 1st.
The questions is … do the markets make big moves or freeze in place heading into winter?
Market Comparision
How do the markets perform leading up to and including the Winter Solstice? The analysis table below breaks down each of the 30+ markets into four separate trading periods. These time frames span 6-days, 4-day, 2-days, and the event day itself. The return performance for each time frame is measured against its normal performance during the year to calculate a final over or underperformance return. This metric quantifies, in percentage points, the advantages or disadvantages associated with the Winter Solstice. Markets highlighted with a checkmark or an “x” should be closely monitored for potential strength or weakness heading into the event.
Calendar Breakdown by Events
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