For the month of January, the two-cycle concept is applied. First, the Dow Jones 30 stocks are ranked from the best performer to the worst by calculating the percent of Januarys in which the stock rose in that month. The top 15 were screened as follows. If the weekly cycle pointed up, the stock is considered a buy. In order to qualify, the weekly cycle had to rise for at least 21 days in the month. The traditionally weakest stocks in the month were screened in order to determine if the weekly cycles fell in the month; the same 21-day rule applied.
The seasonal screen for the month is presented below. The number of years of data is in the last column. The % Times Return column shows the percent of months in which the stock rose. The Return column shows the average percentage gain in the month. The Expected Return column is the product of columns two and three. We can see that Walt Disney has been trading for 39 years and has risen in 76.9% of all Januarys. The average return has been 3.87% and the expected return is 2.98%.
DJIA Stocks That Perform The Best In January
Cycles Research Investments LLC
Of the top 15, these stocks show rising weekly dynamic cycles for at least 21 days in the month and are considered buys:
Regarding the weakest 15, these stocks show declining weekly cycles and are suitable short sales:
I add that the monthly cycle for the overall market decline in mid-January, so the shorts are favored in such a scenario.