Friday, April 15th, 2016

Sell In May and go away?


No way. Do not listen to slogans.

These are not atypical times. US stock market has suffered almost 1.5 years of a brutal bear, where people chose to stay on shoreline waiting for the rising tide to lift all boats. Buy and hold has been dead, and now the Bulls are taking the ball and kicking it higher and higher everyday. We have seen the Market rallies since March 9, 2009 and it has not stopped yet.

The 2000 bear market ended in 2003 when major indexes pushed above their 200 day moving averages, and as it looks SPX is ready to tackle this obstacle in its path now. If you sell in May and go away, you will be missing a hell of a lot opportunity to make some serious coin.  The slogan should be changed to  “Sell in May, Stick and Play ” if anyting at all, and Play hard. Because all those outstanding losses from Stock market Crash 2008 needs to be recouped ? May be yes and may be not. You can’t go on a revenge play, and just play for the sake of it. You need to make some back and slowy as the tide rises.

S&P 500 has sliced its way past 875 resistance levels with no problem and closed at 907 today. Its looks like it my head up to  940 levels soon. The indexes are overbought and can stay overbought for longtime. This is a strong bullish market we have been seeing since March 9, with all the sectors pulling well. It rose from the March 9, 2009 lows and that formed the bottom. 

Those of you who still hugging the shoreline for support, need to wet your toes, the water is nice and shallow and you can make some money here. Actually I am doing it hand over fist, cause when the market is bullish serious money is made on the long side according my Momentum player Guru Dan Zanger. Dan Zanger has seen all these bear markets, and also seen how they end, and when the momentum shifts, and how to roll with it, and take money out of the markets. So come on in, and dip your toes, and get wet and start making some money. The market is a forward looking instrument and it sees things six months down the road and reacts, it never dwells on the past. Yes the past is a reminder, but when the fundamentals change, there is only one way to go, and that is forward.

Fridays unemployment report and Banks stress tests will determine lots of things in the market. Most recently the fundamental market outlook has changed and even bad news is shrugged off and the stocks just keep marching on. The glimmer of hope that Obama has set, is finally taking the shape of a light at the end of the tunnel.

What do you think?

Comments

One Response to “Sell In May and go away?”
  1. Hi just figured i will let you know i had a issue with this blog appearing blank also. Must be monkeys in the page.

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