Mr. Market to January: Let the good times keep rolling. The second trading day of 2012 saw two of three major indices up, while gold stayed above $1,600 an ounce and oil sat at $103 a barrel. For those who subscribe to "the January effect," the belief that a positive first month of an election year bodes well for the remaining 11 months, these first days are important. In fact, going back to 1945 a strong January has predicted solid annual market returns 86% of the time.
With that in mind, it is encouraging that not even negative news emanating from the E.U. could rattle the Dow Jones Industrial Average
The good times didn't keep rolling for everyone, though. Inside the Dow, the single biggest decliner was Verizon
Rounding out our bottom three we have Wal-Mart
All told, it appears the market is continuing a positive trend to kick off the year. It's worth watching with a close eye to see how the market closes this week and this month -- and to see whether past trends remain true.
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David Williamson owns shares of Pfizer, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Wal-Mart Stores. Motley Fool newsletter services have recommended buying shares of Wal-Mart Stores, Illumina, Pfizer, and Netflix and creating a diagonal call position in Wal-Mart Stores. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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