
Wall Street loves to seek patterns that can predict the future. One famous one is the January Indicator. It goes like this: a strong first 5 trading days indicate January will be positive. Then, if January is positive, the year is likely to be as well. A strong start bodes well for the full year. This indicator has been correct about 70% of the time.
So far so good! The first three days were fabulous, then a little give-back. In all, the first five days point to a positive start, possibly a strong January, along with another good year. Nothing is for certain, but the Bull and his partners hope this will be the case. However, it will still be more important to own the right assets – more on this in future blogs. Stay steady my friends.
-The Lonely Bull




