Published January 27, 2023
Back in January 2013, the Stock Traders Almanac created the “January Indicator Trifecta” by combining three indicators that occur over a five week period: 1) the Santa Claus Rally indicator, 2) the First Five Days Early Warning System and 3) the full-month January Barometer reading.
When all three of the “January Indicator Trifecta” readings are up the S&P 500 has closed the year with a gain 90% of the time, 28 of 31 years, with an average gain of 17.5%.
When any of the three are down the year’s results are reduced.
When all three are down, the S&P is down almost half the time (down 3 of 8 years with an average loss of -3.6%). (more…)