Check the closing price for the Dow Jones Industrials Average on Monday, January 31st. A close above 12,217.56 would be a good thing and close above 12,675.75 would be even better. Why are these values significant? A close above the first value would trigger a buy signal from the venerable January Barometer (more in a moment). And a close above the second value would mean a gain for the Dow during the last five trading days of January and would trigger the strongest possible buy signal from my own JayNewary Barometer.
The January Barometer – the theory that states that “as January goes (for the stock market), so goes the year” – was first popularized by Yale Hirsch back in the early 1970’s. Much analysis has been done since then and much has been written on the topic. In fact, in my own book – Seasonal Stock Market Trends - I devoted an entire chapter (oddly enough titled “The Month of January”) to the implications... [Read More]
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