Here’s a stat that you need to know

And what it means for the rest of the year To view this email as a web page, go [here.]( Hey There! Tuesday was a nice continuation of the rally in the market! The good news is we are starting off February green… YAY! But January ended in the red overall. Way in the red. There is a stat out there about January’s performance setting the tone for the rest of the year. Maybe you’ve seen it: “Since 1950, when the S&P 500 is positive in January, the index has climbed an average of 11.9% for the final 11 months of the year. However, when January is negative, the S&P 500 historically rises an average of 2.7% in the last 11 months.” ([Reuters]( That alone makes it seem like we’re going to have a rough year. But there is a caveat to this stat. “More recently, a red January has not necessarily meant a dour rest of the year. In the past 10 times January was negative for the S&P 500, the index was positive in nine of those times over the next 11 months, with an average gain of 13.1%” ([Reuters]( Times have changed, so a bad January doesn’t necessarily mean a bad year. Also, as rough as things may have felt lately, you can see that compared to normal: “The market seems volatile, but its recent swings have been only slightly bigger than usual. During the past 60 years, the average high-low spread — the difference between the highest point of the day and the lowest point of the day as measured by the market-tracking S&P 500 index. So far this year, that measure is 1.8 percent, about the same as it was in 2020, but far less than the 3 percent it averaged in 2008 during the height of the financial crisis.” ([New York Times]( I think we’re still in a consolidation period that could go either way in the short term. I would also say that we do have a lot going on compared to most years, and investor confidence is way down as so many people got caught trying to “buy the dip” that kept dipping. So it is important that you know what to look for when buying a stock that is way down. If you signed up for my Super Scans Club you have gotten this months scanner: It shows you how to scan for stocks that institutions are buying and analysts still love. Fundamentals and smart money are more important than usual in times like these! If you want to learn more about Super Scans [click here to grab the ebook]( and sign up for the club to get the Smart Money Scanner! Happy Trading Markay [Manage Your Email Preferences]( [Unsubscribe]( This email was sent by: InvestPub 495 Town Plaza Avenue Ponte Vedra Beach, FL, 32081, US [Update Profile]( We respect your right to privacy. [View our policy.]( Markay Latimer and InvestPub do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.