January is not a good month for the stock market overall. The S&P 500 is usually flat to lower during the month. BUT, there are individual stocks that excel in January, rising at least 70% of the time and producing as much as 17% gains during the month.
Seasonality is the study of how assets perform at certain times of the year. The stocks below show a strong tendency to rise in January, historically. That doesn’t mean they will rally this January, though. Seasonality is best used in conjunction with other forms of analysis and specific trading strategies, such as the ones discussed in the Stock Market Swing Trading Video Course.
Before getting into the best historical January stock performers, stocks as a whole, as gauged by S&P 500 index, tend to be mediocre in January. Over the last 20 years, the index has moved higher 50% of the time (number on top of January column), and has dropped by an average of -0.5% (number at bottom of January column).
StockCharts.com
Strong Seasonality Stocks for January
The statistics below are based on the historic monthly opening and closing prices. Therefore, gains or losses within the month may be larger than those disclosed below. For example, a statistic may say the biggest rally on a monthly basis was 15%, but during the month the stock could have been up 20%, but dropped to only finish the month up 15% (intra-month losses could also be bigger). This is why it is also recommended traders combine these statistics with other strategies, which help control risk and lock in profits.
Buying at the open and close of the month is also somewhat arbitrary. There are more precise times to take trades. Focus on seasonal opportunities that align with strategies you are already using.
This is the raw data. How you interpret it, and what you opt to do with it, is up to you.
All stocks do at least 500K in average daily volume.Stocks with average or median gains of less than 3% are typically excluded.
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