U.S. stock market is up so far in January. Usual “January Effect” theory goes something like this — if the market is up for first 5 trading days of the year, it augurs well for the whole year. If the market is up in January, the same sentiment holds true. This year, January seems to the profitable month unless some major company announces disappointing earnings in the next one week.

Market historians are fascinated by the January effect because it often sets the tone for the rest of the year. Stocks were up at the start of January last year. 2009 made of lot of investors happy. Personally, I don’t believe in these kind of theories, because anything can happen in the next 11 months. However, when many traders, investor and historians believe in this theory and hype about it when February comes, it will generate lot of enthusiasm in the market. That’s what I am looking for!