According to John Paul, the E-mini S&P 500 is setting up for a big sell-off in January of 2021. This means he expects to see a significant price drop for an extended period of time; days or weeks early in the month. He specifically says the first week or first few weeks of January 2021. The E-mini S&P 500 may drop to the “magnetic” values of 3200 or 2900. (One idea to take advantage of this is to trail a stop. We have some information on this if you’re interested.)
Why is this expected to happen? Aside from John Paul’s many years of experience assessing the market, reasons may include tax implications, the markets reacting to a new U.S. president or new policies, COVID-19 effects, etc. This is not a political statement in the conventional sense; markets go up and down throughout the year regardless of the president.
If you’re using our Atlas Line, Trade Scalper, and other trading techniques, we anticipate many short signals allowing you to take advantage of intraday short/sell opportunities. Your own trading methods may indicate this, too.
Now, those of you who have watched our videos for some time have seen how we provide a January Effect video around early February or so of each year. If you’re familiar with how the January Effect works, you may be wondering, will 2021 be a down year for the E-mini S&P overall? The current answer is that it’s inconclusive. Just because 2021 may begin with bearish activity, the end of January may well close higher than it opened, thus the January Effect says the year will be an up year.
For the record, the January Effect prediction for 2020 is still correct. After the big drop in March, we’ve seen the markets recover then climb to new highs. Yes, it appears the January Effect has been correct again. The question is, did you make any big trades as John Paul had taught (yet again) throughout the year?
The next question is, what do you plan to do with this predictive information?
Typically, December (the current month) is an up month because of the holiday buying and shopping activity. Lately, we’ve seen some great long signals with the Atlas Line and other systems.
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