“Sell in May and go away.” This has become a market season effect also know as the Halloween Effect, a strategy for going long on stocks at the end of October and selling it on the first of May for a profit. It always assumes that probably with a few exceptions that November through April will be more bullish than May through October.
This prophecy has been true for 20 times out of the past 30 years. Selling US stock in May and buying again in November works most of the time. But will it be the same for 2008? Could the uncertainties in the market be a good reason for you to think about bailing out this summer?
Oil is trading at record high levels. The VIX is not going down as the fear maybe rising. The S&P 500 Index (SPX) shows not many changes, still at 1400 resistance level since last week. The formation of the Doji candlestick on the SPX chart indicates the indecisiveness of the market. Can all of this be signals for a possible market reversal? Is it telling the investors to sell in May and really go away? Just wait two more days and let the truth unfold itself.
“The four most dangerous words in investing are, its different this time” - Sir John Templeton
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Ronald Lee is a street smart professional Network Marketing entrepreneur, a self-taught investor/trader, a trainer, an author and a blogger. His vast experience in the network marketing business and passion in stock options investment have motivated him to write books on these subjects. To complement the information that is available in his books, he provides contact coaching lessons on US stock options trading; sharing his trading experiences and highlighting pitfalls to avoid....
“It’s different this time”… to be more precise, it is men’s universal chant. Something like… “This could be the breakthrough…”, “This time, it could be mine”… What do you thing runs through a punter’s mind every time he walks to the betting booth to wage on a number ? Or maybe, it’s more like “hope” and like we all know, try taking away “hope” from a man ??? We all hope, don’t we. Always hoping for something… that something… that big something… that little something…that something that can make a difference in our lives.