With January 2014 coming to a close, John Paul has released the highly anticipated January Effect prediction for how the trading year will trend. Using the January Effect, he is able to determine (with reasonable accuracy) if the E-mini trading price will be higher or lower at the end of 2014 compared to the current trading price at the end of January, 2014.
On January 2, 2014 the E-mini closed at 1837. At the close of January, 2014, the E-mini price was at 1777.00. Since January 2014 was a down month, the January Effect tells us that the end of January 2014 will be below 1777.00 (a down-trending, bearish year).
How can you trade this expected bearish activity? Instead of looking for breakouts like you did in 2013 with the bullish January Effect prediction, look for support and resistance opportunities. In an upcoming video, John Paul will show you how to trade this support and resistance. In the meantime, we encourage you to look back at previous years and see how successful the January Effect was and what trading opportunities were available.
