≈ As goes January, so goes the year. ≈
A subset of technical analysts focus on seasonality or the historical patterns that play out at certain times of the year. One of the more popular measures known as the January barometer states, “As goes January, so goes the year.” I recently came across a different spin on this pattern which I’m dubbing the Valentine’s Day Variant. It comes from LPL Research:
“If the S&P 500 Index is up more than 4% for the year on February 14, the rest of the year tends to be quite strong. In fact, the rest of the year has been higher an incredible 24 out of 26 times, for a very solid 13% average return. Given 2021 was up close to 5% on Valentine’s Day, history would say continued gains over the rest of the year are likely.”
Chart of the Day
This Valentine’s Day Indicator will make you LOVE the market in 2021.
Before the volatility the last couple of weeks, stocks were off to a booming start for 2021. The so-called Valentine’s Day indicator’s track record says you should bet on higher prices moving forward.
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