January Barometer - First Five Days

There are three "January barometers" for whether you should buy or sell into the rest of the year which use January as the gauge. I will cover the first in this article.

The first five days of the trading year have shown with approximately 85% accuracy when you should buy into the market. When the first five trading days of the year are up, the market it is up 85% of the time for that full year. When the market is down in the first five trading days the market is down approximately 50% of the time.

The first five trading days of 2006 start today, January 3rd, and end at the market close on January 9th.