Seasonal weakness over

The tendency to seasonal weakness in the first 3 weeks of January is now over.

We are looking at some tendency to market strength in the next three weeks followed by a likely slow improvement in markets into early Spring.

So a strategy of selling covered calls on stocks should produce nice returns if these tendencies hold.

Stock market Seasonal tendency

We are approaching the end of the Seasonally weak first three weeks of January.

True to its weak seasonal tendency the various stock and bond markets in the USA are enduring a substantial decline.

There is a tendency, historically, for these markets to rally upwards for the three and a half weeks following January 27th or so. That coincides with the end of the current earnings season.

So, perhaps we are in for a respite from the unrelenting bad news starting on Wednesday. I surely hope so.