` Gary Investing Blog: 4 Stocks to Trade for the January Effect


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Sunday, December 23, 2012

4 Stocks to Trade for the January Effect

Capture the January Effect with holding Stocks with Strong Uptrend before 2013 ends.

The "January Effect" is the averagely overall good performance of stocks in the month of January. Buying stocks with strong uptrend is a good way to capture the January boost in 2013. Reminder: Don't hope for a down around of a stock just because of January Effect. A big breakdown could negate the possibility of January Effect.

 HDFC Bank Ltd. (NYSE: HDB) has shown a strong up trend since June. Now, the stock is trading within the uptrend channel and moving towards support at around $40.27. My target is $45 before February 2013.   Even a close below $40.00 is yet not the perfect sell signal. I would put a stop at $37.00 for a stock with strong uptrend like this.

Lions Gate Entertainment Group. (NYSE: LGF) started an uptrend after good reviews of the movie "Hunger Game." It is also closing around support in the channel. MACD above to cross signal line. As long as it stays above last month's low of $14.5, uptrend still enacts and there is a big room to capture profits as we have a wide channel on chart.

Pharmacyclics, Inc. (NASDAQ: PCYC) shows support from MA(50) and the neckline. Friday's candlestick is a hammer on chart, which is an important signal for reversal. Once again, I think the current trading price of PCYC is a great opportunity for entry.

Visa, Inc. (NYSE: V) has been in a strong uptrend since June with a fairly tight channel. Technically, Visa is under a strong uptrend no matter January effect occurs or not. But if it does, I could get to $165 region easily.

S&P 500 (NYSE: SPY) The index has been doing well mid-week on positive economic data but fell sharply due to failure to reach an agreement on fiscal cliff solution. If there is no agreement in the coming 8 days, Jan. 1, 2013 tax hike could send the U.S. back into recession. I believe an agreement would eventually come. No one wants to take blame on sending the U.S. into recession again.

Favorite Tweets / Successful picks
Told you on $RIMM  Mentioned: http://stks.co/fHtT 
Told you on $WAC. dropping 4.77% so far. Mentioned: http://stks.co/bGpb Bearish


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