Dow 8776

Jay Kaeppel explains the January Barometer in this article at Optionetics.com. He points out that if the Dow Jones Industrial Average finishes the month of January with a gain, the market, too, will post a gain by year end 91% of the time. If the month of January is not so kind and the Dow posts a loss by month end, the market will tend to be bearish and post a loss 61% of the time.

Knowing this, 8,776 comes into play since that is where the Dow closed on the last day of 2008. Currently, the Dow sits at 8,212 so there is some ground to make up if we want to take advantage of this method where it has been most accurate. Always the gambler, I will predict a close of under 8,776 on January 31st. As I always say, I'm not here to predict, but I'll do anything to keep my fingers off the trade button while I wait for the next CMI signal.