The market has a great track record of performance after the first 5 days of the year are positive. But in my experience, and also according to Jeff Hirsch, editor of the Stock Trader's Almanac, it's the January Barometer that is the most powerful of the Trifecta.
"As January goes, so goes the rest of the Year", is how I learned it.
But more importantly than all of these seasonal studies, it's the sector rotation and the actual breadth of the market.
And when I say breadth, I'm not talking about these silly superlatives they share on the internet to try and boost their page views. We don't write glorified gossip columns here, nor are we whoring ourselves out on twitter looking for attention.
Facts only around here.
It's the sector rotation and the broad participation that I'm most interested in. And at this point, it's really the lack of stocks going down that really stands out the most. If there is going to be a correction, expect to see an expansion in the number of stocks that are actually going down in price. So far, this has yet to happen.
Also, look for the defensive Consumer Staples to show some signs of life, if markets are going to correct. We haven't seen that at all. Just new relative lows week after week.
This week, we all got together, took a step back and zoomed out on markets to really understand where we are in the current cycle.
I just hosted our first LIVE Monthly Charts Strategy Session of the year.
The macro perspective, the new trade ideas, and the roadmap for the rest of Q1 were all laid out. You can catch the replay, download all the charts and review each new trade here RISK FREE.
Find out why many of the best performing financial institutions in the world keep coming to All Star Charts for help navigating the markets. We're honored, and we certainly do not take this responsibility lightly.
Check it out for yourself.
CLICK HERE to access to this week's video and trade ideas.
I'll see you in there!
JC
