Stock Market Analysis

Monday, February 10, 2014

Negative January Negative Year?

There is a saying "How January Ends So Will The Year". This means that if January is a positive month, the year would most likely end up positive and if January is a negative one, the year would most likely conclude negatively as well.

How true is that statement?

Well, over the past 5 years, there were two Januarys that ended negative with the market ending significantly positive by the end of the year and one January that ended positive but the market ending significantly negative. Only two Januarys followed the adage. So I won't give it too much credit.

So what do I think this year?

I think the adage might just come true this year because the market has behaved almost exactly as I have predicted so far. An intermediate correction, which has just ended, leading into the final leg which will lead to another market crash in the third quarter or so. Yes, it is time for yet another market crash and signals are already flaring up all over Asian markets. The Hindenburg Omen is also something that cannot be overlooked. In fact, I think the next five years will see extreme changes in the global financial picture on power shifts and currency changes. So yes, I do not think the current intermediate correction is going any deeper and I would take any weakness as buy signals for now. Follow how I trade into this year's turbulent market and still profit through my Master's Stock Options Picks service.

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