Airlines Sinking over Canceled Flights

U.S. stocks are moving up at the open today, December 27th. But there should be caution because lower liquidity can amplify market moves due to a lack of liquidity. Many traders are off this week adding to the lower liquidity in the markets. The S&P 500 gained 0.5% after the index hit its 68th record close of 2021 Thursday.

The week between Christmas and New Year’s Eve and the first two trading days of the new year comprise the “Santa Claus Rally” in trading lore, as detailed in the Stock Trader’s Almanac. It’s not a big rally, on average about 1.4%, but it’s shown up in 34 of the past 45 years. The benchmark index historically gains during the Santa Claus rally period — the final five trading days of the current year and the first two of the new year.

After over 1,000 flights canceled over the holiday airline companies are moving lower. United Airlines Holdings declined 3.1% and American Airlines Group shed 2.9%.

Holiday sales were up 8.5% compared to last year a positive sign for retailers. In fact, it is the fastest pace in 17 years, according to Mastercard data. 2022 will be an interesting year with the Fed tapering, crazy inflation, interest rates moving up, and new variations of Covid. What makes the market great for anyone is volatility, big moves. But it is critical to be on the right side to of the move of course.