Getting ready for January bull run [Entries update]
Posting my favorite chart again :p
The January effect is a seasonal increase in stock prices during the month of January. Analysts generally attribute this rally to an increase in buying, which follows the drop in price that typically happens in December when investors, engaging in tax-loss harvesting to offset realized capital gains, prompt a sell-off. Another possible explanation is that investors use year-end cash bonuses to purchase investments the following month.
One study, analyzing data from 1904 to 1974, concluded that the average return for stocks during the month of January was five times greater than any other month during the year, particularly noting this trend existed in small-capitalization stocks. The investment firm Salomon Smith Barney performed a study analyzing data from 1972 to 2002 and found that the stocks of the Russell 2000 index outperformed stocks in the Russell 1000 index (small-cap stocks versus large-cap stocks) in the month of January.
This outperformance was by 0.82%, yet these stocks underperformed during the remainder of the year. Data suggest that the January effect is becoming increasingly less prominent.
You can read more on google ;)
There is no guarentee the Dow goes down to 20 thousand, but I am hoping it does, and I will buy there.
The S&P 500 is easy mode.
The January effect is a seasonal increase in stock prices during the month of January. Analysts generally attribute this rally to an increase in buying, which follows the drop in price that typically happens in December when investors, engaging in tax-loss harvesting to offset realized capital gains, prompt a sell-off. Another possible explanation is that investors use year-end cash bonuses to purchase investments the following month.
One study, analyzing data from 1904 to 1974, concluded that the average return for stocks during the month of January was five times greater than any other month during the year, particularly noting this trend existed in small-capitalization stocks. The investment firm Salomon Smith Barney performed a study analyzing data from 1972 to 2002 and found that the stocks of the Russell 2000 index outperformed stocks in the Russell 1000 index (small-cap stocks versus large-cap stocks) in the month of January.
This outperformance was by 0.82%, yet these stocks underperformed during the remainder of the year. Data suggest that the January effect is becoming increasingly less prominent.
You can read more on google ;)
There is no guarentee the Dow goes down to 20 thousand, but I am hoping it does, and I will buy there.
The S&P 500 is easy mode.
Comment:
It's all collapsing what the.
Hmmm.
If US follows, maybe a quick crash to my entries, then hard bounce :)
Hmmm.
If US follows, maybe a quick crash to my entries, then hard bounce :)
Comment:
Alot of people trade indices in particular the S&P will this make them volatile?
Better I think is to look at them but trade stocks instead (for that asset) and also trade all the rest, commodities crypto's Forex....
Imagine being a e-mini trader and the 90's happen again :D
It just went up in a 2 straight lines with no movements for the whole decade.
Was dong some backtesting trying to find something, NOTHING there.
Looking at this got me so depressed. This is horrible.
Good thing there are plenty of other assets as well as individual stocks that all have their own life.
Stock market after some volatility might go up in a dtraight line again.
I'm just saying, keep an eye on the indices of course, but careful putting too much effort in trading them, might not be interesting.
Better I think is to look at them but trade stocks instead (for that asset) and also trade all the rest, commodities crypto's Forex....
Imagine being a e-mini trader and the 90's happen again :D
It just went up in a 2 straight lines with no movements for the whole decade.
Was dong some backtesting trying to find something, NOTHING there.
Looking at this got me so depressed. This is horrible.
Good thing there are plenty of other assets as well as individual stocks that all have their own life.
Stock market after some volatility might go up in a dtraight line again.
I'm just saying, keep an eye on the indices of course, but careful putting too much effort in trading them, might not be interesting.
It is probably early for a 1929 crash as I have predicted. I think we bottom where I have shown then bull market and the big crash comes later but who knows.
Disclaimer: I sound like a Trump hating leftist but I am not one I swear XD.
There is little correlation with whoever is president and the stock market, trust.
Trollconomists might tell otherwise, but thet are wrong.
It all follows debt cycles, global emotions, and mathematics. Governments are "pawns" of the bigger picture.