We have made it to 2022, and it is January. Markets look at a couple of different phenomena in January, and that could help to set the tone for the rest of the year. First phenomena is that small-cap stocks tend to trade well in January. Small-caps have outperformed the market in January going into February.

The second phenomena is called what is known as the January Barometer. The tone for the year is set during the first week of January. Historically if stocks trade well in January, and especially the first week of January, this sets the tone for the rest of the year.

Remember these phenomenas are based on history, and previous performance does not guarantee future results, so please trade with caution. Between January 1, 2022 and December 31, 2022 there will be a lot of economic events and data points to lookout for. Any of these events can derail these phenomena.