Over My Shoulder

Dogs of the S&P

January 23, 2012

For those of you who follow the dogs of the Dow theory, Nautilus did a little dogs of the S&P 500. "Second, if history is any guide, the current outperformance is about to be completely reversed in February and then recover most strongly from March thru May — an effect that nimble traders could try to exploit... Last, and most interesting to us from a macro standpoint, is that this year's + 9.17% January outperformance is the third largest, behind only Jan 2001 and Jan 2008, both of which were the first full years of new cyclical bear markets as is our prediction for 2012."

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