The Bull is Awake, But Will it Continue?

Weighing the Pros and Cons.

I hope that you had a good and prosperous week and you were able to take advantage of the big moves in January. Several of our “hot” strategies, including Large Cap Leaders (LCL), GEMS and NASDAQ All Stars (NQ All Stars) are beating their respective benchmarks. LCL and NQ All Stars are up over 10% YTD.

After 6%, 9%, and 12% run-up moves in the S&P 500, Small Caps, and the NASDAQ, respectively, the most important question is, “Does this positive market continue? Are we in for even better returns in the near future?

We don’t know, but we want to offer you a few different perspectives.

In this article we’ll look at:

The January Effect
5 Key Conditions That Could Stall The Market
What to Expect in February
Our Solution to Market Uncertainty

The January Effect

You may recall that in the last few Market Outlooks, we have addressed the January Trifecta… the Santa Claus Rally (SCR), the First Five Days (FFD), and a positive month of January indicates that we will see the “January Trifecta.” This signals that we are on much better footing with a high chance of a positive year. See the chart below, which was also posted in a previous Market Outlook: