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Message-ID: <386A9C07.9DD812C7@xxxxxx>
Date: Wed, 29 Dec 1999 15:40:55 -0800
From: Ira Tunik <ist@xxxxxx>
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To: realtraders <realtraders@xxxxxxxxxxxx>
Subject: research on the January effect.
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Research, in many cases, is done for you by the various exchanges if you
bother to get their literature. The KCBT Market watch turned out some
interesting information about the January effect. The following
information is based upon buying the spread on about Dec 16 and selling
it on or about Jan 6. The data is for the years 1985 to 1999.
Buy the value line arithmetic index and sell the NYSE composite. Max.
profit year $17,500 least profit year $1400. Max. draw down $2100. the
draw downs all occurred between 12/17 and 12/22. there were only nine
years in which draw downs did occur.
Buy Value line and Sell DJIA. Max. profit $8800 least Profit year $450.
Max. draw down $800.
Buy the value line and Sell the 2 S&P 500. Max. profit $6715, least
profit $215 and the max. draw down was $220.
There has not been a losing year . Just some info that might be of
interest. This does not guarantee that it will happen this year. This
is just to let you know that the information is out there and you don't
have to spend your time constructing tables and spending hours of
research. The exchanges selling these products will do all the work for
you. Ira.
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