Xmas Indicator for 2012

BarroMetrics Views: Xmas Indicator for 2012

Many years ago I read an article about the ‘Santa Claus Rally’ and ‘The January Barometer’.  Since reading the article, I have incorporated both into my trading plan.

The Santa Claus Rally takes in the last five days of a year and the first two days in January.  If a rally does not occur, I look for either a bear market or a sideways market to come about.

The January Barometer says that ‘January goes, so does the year’.  Every down down January was followed in the following January by:

  • a new or continuing bear market
  • a 10% correction or
  • a flat year.

So, put these two together and you have a reliable roadmap for 2012 – 2013.

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