The January Barometer Theory

The economic repercussions of a stock market crash depend less on the severity of the crash itself than on the response of economic policymakers, particularly central bankers. - Ben Bernanke

I’d be a bum on the street with a tin cup if the markets were always efficient. - Warren Buffett

How much credence do you put in the “January Barometer Theory.” If the year truly does go the way this month does, investors are going to take their lumps this year. After finishing the worst month we’ve seen since February ’09, some are already feeling bruised. Does anybody change their trading habits based on this? It seems choppy waters are ahead, and if analysts’ predictions are an indicator of what’s to come, hold onto your hats. Here are just a few predictions that have either come out of the ZepInvest publications or have been seen elsewhere:

• We will see the first 1,000 point down day on the Dow in history.
• We will have a correction of 25-50% off the recent highs.
• Oil will crawl up to and settle around $100/barrel.
• The Dow will reach 12,000 this year.

Those are bold claims and if we get even close to any of them, it will be an interesting year.

The people over at Shark Biotech were busy today. This daily publication focuses on companies most of us have never heard of but will probably benefit from at some point in our lives. They had not one, but two alerts come out today. If you are interested in this sector, you need to follow Dan Rosenblum and his staff. The two alerts out today covered a buy and sell based on recent news and earnings from these companies.

Gerald Appel’s Systems and Forecasts has offered a “Market Update.” This daily piece is keeping an eye on QQQQ. They are pretty convinced that it is going to move in a specific direction. Which way and the trading point is something to read about in the latest piece from the staff up in Great Neck, NY.

Ladies and gentlemen, whether you believe that the market is going to follow January’s lead or find some legs and run, the one thing that is guaranteed is that the ZepInvest Publishers will be there, every step of the way.

For more information, please go to http://www.zepinvest.com.

Print this post