Australian Investment Blog

Yesterday the ASX200 kicked December off with a big bang rallying 100 points (1.93%)! Buying was witnessed across the board, from banks to the embattled resources, with BHP rebounding 3.6% and RIO 2.2%. Many people are now saying the Christmas rally is off and running; so after November’s very typical 7.5% correction (discussed at length in previous reports) it's time to look closely at what followed in the various Decembers since the GFC.

Over the last 6 years the average range for December is 284 points with extremes at 189 and 344 respectively. The average trading range for these recent Decembers has relatively large extremes but it is very comparable to the typical November retracements of 7% (7.5% for this November).