FREDAlert!
Volume 4, Issue 3
December 7, 2012
We wanted to put out our January Effect stock list, as the two best times to buy these stocks are the second and fourth week of December. There are two strong environments for the January effect trade. One is a strong up year, where it is possible to find some stocks that are quality companies that have made significant lows as close to yearend as possible, but in any event after September. The other environment is a down year, and in this case it usually pays to buy cheaper, less high quality stocks as they tend to bounce the most under those circumstances.
Last year’s list was only four names, and several have asked for more stocks this year so we have more: ten in all. We list with parameters below. In all cases, the standard January effect is to sell on January 31 or at the target listed below. By the way, in addition to the names below, there are two additional big cap names that could be January effect names: FCX, which has fallen on news and likely needs some time to settle out, and could attract some selling, and AAPL. AAPL has not made new lows for 2012 so it does not strictly meet the criteria for a standard January effect trade – but looks set up to rally nonetheless.
- FSLR: Buy under 31.50, target 36
- AMD: Buy under 2.40 target, 3.10
- INTC: Buy 20.50 or below, target 22.80
- RF: Buy 6.60 or below, target 7.60
- SNV: Buy 2.40 or below, target 2.80
- GNW: Buy 6.60 or below, target 8.00
- DVN: Buy 53.50 or below, target 59.50
- VALE: Buy 18 or below, target 20.50
- PSTL: Buy 13.60 or below, target14.80
- WU: Buy 13 or below, target 14.40