Seasonality Trends: For January 2020

Five Additions and One Expiry This Month

eResearch | January historically is a good month for stocks as investor optimism at the start of a new year dominates market sentiment. December sees many indexes/sectors reach the end of their seasonality strength. This makes those indexes and sectors that remain in seasonal focus even more important, and would be areas where astute investors should look for opportunities.

Changes For January

January sees 5 additions to the seasonality mix while, over the ensuing four weeks, there is but one index, the NASDAQ, that reaches the end of its seasonality strength.

Importance Of Seasonality Trends

Seasonality refers to particular time-frames when stocks/sectors/indexes are subjected to and influenced by recurring tendencies that produce patterns that are apparent in the investment valuation process. A seasonality study preferably uses at least 10 years of data.

Seasonality Trends Chart

The Seasonality Trends chart below shows the periods of seasonal strength for 28 market segments (sectors/indexes). Each bar indicates a buy and a sell date based upon the optimal holding period for each market sector/index.

2019-12-31 Seasonality Chart

Seasonal Positive Strength for the Market Segments in January

The following table shows which indexes and sectors are “in season” during the month of January. The items in RED are this month’s additions.

INDEX/SECTOR FROM UNTIL
S&P/TSX Composite October 28 June 5
S&P 500 Index October 28 May 5
Dow Jones Industrials October 28 May 17
NASDAQ October 28 January 5
U.S. Dollar January 1 March 8
Materials January 20 May 5
Real Estate January 20 May 5
Bio-Techs October 28 February 24
Retail January 18 April 27
Metals & Mining January 20 May 5
Gold December 15 February 28
Silver December 15 February 28
Copper December 15 February 28

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About Bob Weir 3002 Articles
Bob Weir has over 50 years of investment research and analytical experience in both the equity and fixed-income sectors, and in the commercial real estate industry. He joined eResearch in 2004 and was its President, CEO, and Managing Director, Research Services until December 2018. Prior to joining eResearch, Bob was at Dominion Bond Rating Service (DBRS).