Stock Trader's Almanac 2002, Page 16
Incredible January Barometer (Devised 1972)
Only Three Significant Errors in 51 Years
Since 1950, the January Barometer has predicted the annual major trend of the stock market with amazing accuracy. Based on whether S&P composite index is up or down in January, most years (excluding six flat years 1956, 1970, 1978, 1984, 1991 and 1994) have, in essence, followed suit. Only three significant errors 1966, 1968, and 1982, Vietnam affected the first two. However, there were no error in odd years when new congresses convened. Bear market began or continued when Januarys had a loss. |
