The first month of the New Year has come to an end and the market ended the month of January on a negative note. Every time the market goes down in the coming days or weeks, you will hear those talking heads talking about those January effect correlation and reminding everyone how 2014 will likely be a down year, etc, etc. All I can say as a trader is one should be trading the market base on price actions not how the year will end. In regardless if the market is in a down trend or an uptrend, there will be rally and sell off. Therefore, trade according to the price actions and what is in front of you.
Here is a video looking at the price actions and what one can expect in the near term.
Click here to view the video if you do not see a video player on your screen.
Happy Chinese New Year! Gung Hay Fat Choy.
