January 11, 2013
Uncategorized
By Geoff Bysshe
Earlier this morning I created this video to follow up last week’s blog post about the January Effect, and to demonstrate the institutional volume pattern I shared with everyone late last year. Members of our day trading room got to see this all come together in real-time, but I thought it was worth sharing via this blog.
The beginning of the year is always a very interesting time to be a trader if you understand how the markets are so much a reflection of human emotions. You know what I’m talking about – all those New Year’s resolutions to do something better!
The same thing happens to stocks – some get going, some get dumped and some just can’t decide what to do, but they’re all in a heightened state of awareness that something has changed. It many just be a new year, but for many stocks the change in the year matters for at least the first couple weeks, and like the commonly accepted principle that it takes about 20 days to change a habit…
The first couple weeks of the year can tell you a lot about what’s to come.
The rest is in the video.