Seasonal Patterns: January Effect

December 31, 2018 | Filed under: Financial, Stock

So. Always interested to see what happens in the first week of trading in January (and the first month too). There is a pattern, that has a high correlation. It is a 2 part pattern.

First. As the first 5 days going in the stock market (S&P) so goes the balance of the year. There is about about 85% correlation. So, if the market goes up in the first 5 days of January, then the market is likely to go up. It can give you an idea, of what kind of year, it may be in the market.

Second. As the first month goes in Jan. So goes the market. A little higher correlations almost 90 percent.

So. Watch. See what direction, the market may go.

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