Your EarningsBeats Digest Is Ready! |

Published: Wed, 01/10/24

Your EarningsBeats Digest for January 10, 2024

Live Trading Room today at 10 AM ET. Details below. 👇

The January Effect Has Been A Very Important Predictor For The S&P 500

The big Wall Street firms employ incredibly brilliant minds with an excellent understanding of both economics and what drives stock prices higher. It makes perfect sense to me that this collective group can get a very early sense of what lies ahead for stocks and in which direction the market is most likely to go very early in a calendar year.

That results, in my opinion, in a January stock market performance that "predicts" the balance of year (BOY) performance as well. We've studied this "January Effect" intensely over the years, breaking January performance into quartiles. Quartile 1 represents the best 25% of Januarys since 1950, followed by 3 other quartiles in order of January performance. The following is a slide that summarizes our research and the rather obvious influence that January performance has on BOY performance.

From left to right: S&P 500 (since 1950), NASDAQ (since 1972), Russell 2000 (since 1988)

Blue: January Performance | Green: Balance-of-year (BOY) Performance

The takeaway: The top 25% of Januarys lead to much stronger average balance of year (BOY) performance than the bottom 25%.

None of our signals provide guarantees of future stock market performance. To the best of my knowledge, there are ZERO guarantees when it comes to the stock market. However, by becoming more educated in how the stock market works and the various clues that we receive, we can be much better equipped to manage the huge risk that's always associated with the stock market.

The above slide is just one piece of January performance that you should be aware of. For a FREE 30-day trial to EarningsBeats full service, we'll send you the recording of our January Effect webinar from last Thursday that was provided to all of our EarningsBeats.com members.

I hope you take advantage of this FREE offer!

Keep this on your Watch List!

Want more? Catch our live show:

Subscribe for Notifications 🔔

Happy Trading!

Tom Bowley
Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.

10411 Motor City Drive
Suite 750
Bethesda MD 20817
USA

Unsubscribe | Change Subscriber Options