In early January 2021, you may well see the E-mini S&P price drop signficiantly. John Paul from DayTradeToWin’s market analysis is provided in the video below. He believes a number of factors will contribute to a multi-day or multi-week price drop, including COVID-19 impact/strain news, vaccine reports, a slower than anticipated recovery due to a slower Q4 pandemic economy, an outgoing U.S. president who may take certain actions during his final days in office, a new U.S. president who may want to overturn existing policies or impose new laws/rules that impact the markets, etc. As you can imagine, the list goes on and on.
So, how can you take advantage of this? If you have a big trading account and don’t mind holding a position for multiple days, you could short the market after multiple days “prove” the bearish trend. If you’re a regular intraday trader, then you can use the various day trading systems offered by DayTradeToWin. One idea is to prioritize short signals, especially when price crosses and stays below the Atlas Line for the given day. This prediction may well provide you another level of relative confirmation. For more frequent opportunities, consider scalping when the Atlas Line and sell-off are indicating short.
If you have paid attention to DayTradeToWin.com’s trading videos, almost every year you will find a January Effect video. In these videos, John Paul provides a prediction if the E-mini’s price will be higher or lower by December 30. If the month of January closes higher than it opened, it is said that by December 30, price will be higher than its position in January. This is the main rule of the January Effect. Even if we see the predicted sell-off, that does not mean the January Effect will be “off.” Price may well close higher and thus we see another up year as we did in 2020. By the way, isn’t it remarkable that the January Effect again appears to be correct despite the big pandemic crash in 2020? This is why you should pay attention to what John Paul says when it comes to the markets.