How The 'January Effect' Could Spark Tech Stock Renaissance In October, Q4
Portfolio Pulse from Piero Cingari
A study by Datatrek Research suggests that technology stocks are likely to rally in October and Q4, based on the 'Strong January Return Indicator'. In January 2023, the S&P 500 index, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), surged by 6.2%, while the Nasdaq Composite, represented by the Fidelity Nasdaq Composite Index ETF (NYSE:ONEQ), gained 10.6%. Historically, both indices have shown strong performance in the fourth quarter of 'Strong January' years.
October 05, 2023 | 4:46 pm
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POSITIVE IMPACT
The Fidelity Nasdaq Composite Index ETF (NYSE:ONEQ) is expected to perform well in Q4, following the 'Strong January' trend.
The 'Strong January Return Indicator' suggests that when the Nasdaq Composite index sees substantial gains in January, it tends to perform well in Q4. This year, the Nasdaq Composite, tracked by ONEQ, saw a 10.6% gain in January.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) is likely to see positive performance in Q4, based on historical trends during 'Strong January' years.
The 'Strong January Return Indicator' suggests that when the S&P 500 index sees substantial gains in January, it tends to perform well in Q4. This year, the S&P 500, tracked by SPY, saw a 6.2% gain in January.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90