January Effect

Hey I don't here any of the chatter boxs talking about the Jaunary effect.

So goes January so goes the year, Lets keep that under wraps for now.

 

That is NOT the standard definition of "January Effect" that most people adhere to. It is that stocks tend to rise during the early part of January.

 

It's mentioned in Trader's Almanac, called January Barometer.

A few versions,

1. Jan 1st 3days up, or
2. Jan first week up, or
3. Jan up,

then there is better odds for the year to go up.

 

So if one month market is down, it automatically implies rest of the 11 months would be down?

Is that based on some Technical analysis or subjective doom and gloom and negativity ?

 

Right or wrong that quote has been around for years. Where have you been, kid?

 

The real facts have to do with the superbowl winner.

Orginal NFL teams wins (giants) market up
old AFL teams wins(patriots) market down for year