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To: nicewatch who wrote (22287)1/20/2005 5:28:20 PM
From: Bucky Katt  Read Replies (1) | Respond to of 48461
 
That may be correct, think how bad it would have been if they hadn't been 'in' to slow it down?



To: nicewatch who wrote (22287)1/20/2005 5:34:11 PM
From: Bucky Katt  Read Replies (1) | Respond to of 48461
 
Triple play: Statistical third strike that looms>

Three investment barometers are pegged to the start of each year: the Santa Claus rally, comprising the last five trading days of the old year and the first two days of January; the first five days of the new year; and the month of January.

These periods are tracked by the Stock Trader's Almanac. The most powerful correlation to full-year performance lies in the results for January. Since 1950, 20 negative Januarys produced 16 negative or flat years.

When all three indicators are down, chances for a positive year are even worse.

"There's definitely a market struggling to continue to stay in a bullish mode. A lot of red flags have been thrown up," said Jeffrey Hirsch, editor-in-chief of the almanac.

Already, the Santa Claus rally period and the first five days of January have ended with stocks lower. With eight trading days to go, a negative January would be a third blow.

There's a battle going on right now," said Hirsch "There's no sense being in the middle of the battlefield when the
traders have it out, unless you're one of them." (;->


Peter Jankovskis, director of research at OakBrook Investment in Lisle, agreed. He believes the selling thus far in January reflects investors cashing in profits in a new tax year after the post-election rally in November and December.

"What we like to do in January is hold our position to the end to let all the tax positions work themselves out," he said.