I researched the performance of the Dow in Mid Term Election Years going back to 1922 during the Christmas Holiday Period.  I used a combined 3 week timeframe to get the results in the table below which included the week before Christmas Week,  Christmas Week and the week after Christmas Week.  Keep in mind some of the Christmas Holiday's fell on a Saturday or a Sunday.  When the Christmas Holiday fell on a Saturday I used the Monday thru Friday before Saturday as Christmas Week and when the holiday fell on a Sunday I used the Monday through Friday period after Sunday for Christmas Week.     

As you can see in the table below there have been 21 Mid Term Election Years since 1922 and 19 out of the 21 Mid Term Election Years the Dow had a positive return which is a 90% success rate.  The only Mid Term Election Years the Dow didn't have a positive return were in 1926 and 1990.  Meanwhile the Dow's Average 3 Week Combined Return for the 21 Mid Term Election Years was +2.46% during the Christmas Holiday Period. 

Dow 3 Week Combined Performance for Mid Term Election Years Only
(Week before Christmas Week + Christmas Week + Week after Christmas Week)

 

Year	3 Week
	Return
1922	0.92%
1926	-3.26%
1930	0.89%
1934	3.96%
1938	1.34%
1942	3.19%
1946	1.69%
1950	7.05%
1954	3.63%
1958	4.45%
1962	2.17%
1966	0.26%
1970	1.57%
1974	6.94%
1978	3.15%
1982	6.28%
1986	0.79%
1990	-1.03%
1994	1.58%
1998	4.06%
2002	2.07%
Avg Return	2.46%

To sum things up what this shows is that the Christmas Holiday period has favored the Bulls significantly since the 1920's especially in a Mid Term Election Year so hopefully this year will continue the trend. 

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