January Effect Stocks 2014
I have identified 10 stocks which appear to have the potential to be big winners according to the January Effect (see below for description of January Effect). These 10 stocks will be monitored for at least the first three weeks of January.
I will provide detailed technical analysis which includes; suggested entry prices, stops and price targets. In past years, many of the January Effect stocks I have identified have doubled in price in a short period of time and some of this years candidates appear capable of strong performance.
The January Effect stocks will be tracked at no additional charge for paid subscribers to Alphatrends, however no access will be provided for trial users of Alphatrends.
If you wish to purchase the analysis and follow up for these stocks, the price is $49. It is non-refundable, no exceptions. This is a one time fee which will give you access to; the list of stocks with suggested levels to act upon, daily follow up reports through January 25 and one live webinar. You can purchase it here.
The email you use to pay will be the one that the January Effect updates will be sent to. There will be no way to access the January Effect stocks if you do not have a vaild email.
Alphatrends January Effect Candidates 2014
– Begins January 1, 2014
– You will be provided with at least 10 stocks which fit the January Effect criteria
– Suggested entry prices, stop levels and price targets will be clearly identified
– Stocks will be followed and updated for a minimum of the first three weeks of January (longer if price action dictates.)
– You will be given the criteria used to cull through hundreds of stocks to find the best candidates.
-FREE for paid Alphatrends subscribers or just $49 for the January Effect service which will include at least one live webinar.
-All reports will be sent via email.
– Click below to signup and learn more about what the January Effect is.
Do not delay on this!
The list will be sent out January 1, 2014
If you are unfamiliar with the January Effect, this should help.
Picking bottoms (or a top) in a stock is one of the most difficult jobs on Wall Street and it is something which I rarely attempt to do. There is, however, one time of year that I have had success in finding deeply oversold stocks which have produced incredible short term percentage moves over the course of 2-3 weeks. Now is that time of year!
First, let’s understand how the January Effect works. Stocks which are down significantly at year end often experience further pressure as investors give up on the company and decide to sell the loser in order to offset gains they may have already taken in their account. Offsetting gains with losses allows investors to purge their losers and avoid paying some or all of the capital gains they may have already taken. It is also common for funds to sell their position in a losing stock so they don’t “look bad” for owning such a piece of garbage in their year end holdings disclosure. This is known as window dressing, they try to make their portfolio look good for investors.
The best description of the “January Effect” comes from Wikipedia “The January effect (sometimes called “year-end effect”) is a calendar effect wherein stocks, especially small-cap stocks, have historically tended to rise markedly in price during the period starting on the last day of December and ending on the fifth trading day of January. This effect is owed to year-end selling to create tax losses, recognize capital gains, effect portfolio window dressing, or raise holiday cash. Because such selling depresses the stocks but has nothing to do with their fundamental worth, bargain hunters quickly buy in, causing the January rally.”
I do not think it is as precise as the last day of the year and then selling on the fifth trading day of January, but the reason in this description is valid (except raising holiday cash, do you sell your stocks so you can buy a nice present for your wife?).
Keep in mind that the stocks on the list are not in good technical condition, the charts all look terrible! Also, the fundamentals for these companies are probably lousy. These stocks should be looked at as HIGH RISK and you should consider buying a basket of them across different industries to spread the risk.