Your Daily Bit of Wall Street Wit & Wisdom

Super Bowl

This year’s Super Bowl Matchup, h/t AP Photo / David J. Phillip

“It’s the little exceptions that get you.”
— Richard Russell

With January now in the rear-view mirror, and just days ahead of the Super Bowl, it’s a good time to take a moment to consider the January Barometer and the Super Bowl Stock Market Indicator.

You may be hearing frequent mention of, “As goes January, so goes the year,” and “An NFC team (Los Angeles Rams) victory is bullish, an AFC team (New England Patriots) victory is bearish.”

Those proclamations are often followed by, “It works more than 50% of the time.”

If you believe in such things, come Sunday you’ll be betting on the Rams.

Sometimes it may end up that January closely represented a fractal of that year’s trading.  And sometimes the winning team’s conference coincides with the market’s primary trend.

While such measures may be amusing to look at, superstitions with no actual correlation to market price movement should not be solely relied upon when risking your hard-earned money.

Traders will be well-served to consider additional input before taking sides in the market.

Enjoy the game.  I like the Rams.  But not because the market had a vigorous rebound in January.  More so, I look forward to the big battle between Bulls and Bears each trading day.

Best regards,

Steve

 

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