Tags: super | bowl | market | indicator

Kicking Around a Super Way to Predict the Stock Market

By    |   Thursday, 02 February 2012 10:35 AM

One of things about markets that has interested me is seasonality.

There is an old adage in the stock market that you sell in May and go away. For some reason, from October to May is when the market usually sees the majority of its gains.

There is the January indicator, which states that which way the market closes in January is how it will go the rest of the year. In "up" years for the market, the January indicator is correct more than 80 percent of the time.

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Another indicator is the Super Bowl indicator.

The Super Bowl indicator is based on the belief that if a team from the original NFL wins, it is bullish for the stock market. When a team from the original AFL wins, it is bearish for the stock market. The indicator posts about an 80 percent accuracy rate.

For example, in the past 10 years wins by the Patriots in 2002 and Steelers in 2006 and 2009 all correctly predicted the moves in the stock market.

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However, wins by the Pats in 2004 and 2005 occurred during positive years in the stock market. The Giants' upset win in 2008 occurred during the worst year for Wall Street in decades. So it isn't infallible. However, it works more often than not.

Therefore, on this Super Sunday, if you are bull, you will be going for the Giants; If you are a bear, the Patriots.

About the Author: David Skarica

David Skarica is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes the Gold Stock Adviser. Discover more by Clicking Here Now.

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Thursday, 02 February 2012 10:35 AM
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