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.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.