The January Indicator doesn't look good for 2016

I am very concerned about the January Indicator. The January Indicator is the belief that as the month of January goes for the stock market, so will go the full year. There is a further belief that as the first week of January goes, so goes the full month... and then the full year.

Well these first days of trading for the stock market have been miserable and the main stream press is already picking up on the January Indicator and that is likely to impact more investors and create a self-fulfilling prophecy.

Right now it appears like January will be a big, bad month filled with red ink.

The January Indicator isn't just folklore -- there is historical data supporting it.

But since the "little guy" is really not running the stock market anymore, and the big mutual funds and pension funds are, perhaps the news of a Red January in the main stream press will not lead to a market rout and a self-fulfilling prophecy of a down market year.

There is also something else to consider: when the mainstream press picks up on something on Wall Street such as a big sell-off, or a bull run, it sometimes means that trend is over and a turnaround is in store.

I hope that having the main stream press talking about the January Indicator signals the end of the selling instead of leading to a bigger sell-off during the full month of January.