Money Flow January Effect

The 2025 tape bombs are in full effect.

First there was DeepSeek. Then came the tariffs.

Just don’t lose sight of the money flow January effect.

Let’s face it, it’s easy to get blindsided by out of the blue market-moving headlines.

Last week, I told you how the DeepSeek worries revealed the weak hands. From our data standpoint, that call is working as many of our top plays keep attracting capital.

Shifting to more recent headlines, traders are uneasy on the tariff talk. As we highlighted in our 2025 market outlook, we viewed tariffs as more of a bargaining chip than anything.

Look, it’s easy to get faked out following headlines!

This is where cold hard data helps you navigate.

Today we’ll unpack the latest market gyrations. Then we’ll highlight a powerful signal study showcasing the money flow January effect.

Finally, we’ll offer up 2 Health Care stocks under healthy accumulation…mainstays in our research.

Lots of Stocks are Attracting Healthy Money Flows

On Wall Street, you learn to follow the money.

Stocks move due to one basic law: supply and demand. When demand is strong, stock prices head north.

A beautiful illustration of this is with our Big Money Index (BMI). As long as it’s trending higher, it suggests that more stocks are getting bought compared to those getting sold.

This simple indicator defines our top-level risk on / risk off signal. Here you can see the latest trend is clearly up:

Now that we understand the overall trend, let’s dive into sectors. It’s important to locate which groups of stocks are most popular.

Below breaks out all inflow signals in the month of January by sector. Keep in mind these are individual stocks.

Technology and Health Care made up the lion’s share with 19.3% buys and 17.9% buys respectively:

Now you can understand why we’ve been so constructive on stocks…we simply follow the money.

But as usual, MAPsignals isn’t just in the business of recapping the past…we also use our unique lens to help you prepare for the future.

One month ago, we offered 3 reasons to buy stocks in January.

Turns out, there’s a powerful money flow January effect which spells good fortune for the remainder of the year.

Money Flow January Effect

The wait-and-see approach to trading rarely helped me. I’ve always preferred evidence to guide the way.

A little volatility certainly didn’t change that view. If anything, it strengthened the case.