This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The January Effect: Does it Matter in 2014?

NEW YORK (TheStreet) -- In several appearances throughout early 2014, Carter Braxton Worth, chief market technician and managing director at Oppenheimer & Company, has brought to attention the seemingly important trading month of January. 

January. The month where everyone's clock finally gets reset. All the good trades gone. Better yet, all the bad ones washed away. It's a new year. A new beginning. Another chance to make yourself whole and attempt to beat the market, again. 

A month where "new money" comes flowing in from mutual funds and retail investors who waited out the previous quarter -- or possibly several quarters -- looking for a better entry. Suddenly, in a new year with a fresh start, it's okay to invest at will. 

For the past five years, we've started the first day of trading off in the green. Not the case in 2014. 

Must Read: Abercrombie & Fitch Soars, but Will Crash Again

For the past five years, we've ended in the green after the first five trading days of the year. Not the case in 2014. 

However, the significance of the second line is more important than the first.

In two separate appearances on CNBC's "Fast Money" TV show, Worth revealed the following about the S&P 500 (SPY):

When the first five trading days of the new year are positive, the month of January ends positive 76% of the time. When the month of January is positive to start the year, the stock market finishes the year positive 82% of the time. 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SPY $206.33 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs