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Strategist: Here's best way to play a Santa rally

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

Editor's Note: Jeffrey A. Hirsch is editor-in-chief of the Stock Trader's Almanac, which popularized the "sell in May" market strategy.

December is the No. 1 S&P 500 month and second best for the DJIA since 1950 by performance, averaging gains of almost 2 percent for each index. It's also the top Russell 2000 index month and second best for the Nasdaq composite and Russell 1000. Rarely does the market fall precipitously in December.

In pre-election years, December provides even better stock market results.

The DJIA averages a 3.0 percent gain, the S&P 500 3.2 percent, Nasdaq 4.9 percent, Russell 1000 3.5 percent and Russell 2000 4.0 percent in December.

Here's the play...