The FTSE 100 has gone up from 7137 on 6th December to 7519 yesterday, a rise of about 5% over the last 10 days. Some of this may be attributed to the results of the General Election, but it's worth noting that the Santa Rally often starts in the first half of December and continues until the first week of January. (There wasn't a Santa Rally last year but it happens two out of three years.)

So, are we witnessing a Santa Rally and how high will it go? Could the FTSE 100 touch 7800? Is it worth laying a spread bet?

My guess is that the rally (for whatever reason, Boris or Santa) has further to go on the basis that:

1. The GBP has probably peaked against the USD and is likely to fall back a few points.

2. There's general optimism now that Boris has a working majority

3. Trump is coming up for re-election next year and is likely to boost his chances by moderating his trade war and causing a stock market surge.

4. All the other factors that contribute traditionally to the Santa Rally - like city bonuses, tax considerations and office parties.

I'm seriously considering a small spread bet with a target figure of a 300 point gain.

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