Goodbye April, We entering May (Time to Sell?)
We frequently heard “Buy on October, Sell on May and go away” senteces, right? I think all of you who bought stock on October 2009 and hold until today, you’ll gain some significant income. Entering May, we’ll need to be aware. Based on Stock Trader’s Almanac 2010, “Disaster area May/June” between 1965 to 1984 with S&P down 15 times from 20 of May month. But between 1985 to 1997, May is one of the best month in a year with 13 up in rows (average 3.3% every year), after that it up 6 times, and down 5 times. $10.000 investment will grow to $464.305 if we always buy on November and sell on April in 59 years, compared to loss about $1.988 if we buy on May and sell it on October.
If you want to know the detail of this data, i recommended you to read Stock Trader’s Almanac. It’s full of seasonality analysis to cover your fundamental and technical analysis.
Let’s see S&P 500 chart until yesterday
On Daily chart, it start forming a flag and ranging from . Just be careful on this movement. The RSI also indicates some bearsih divergence. It can be a sign that the bullish maybe rest for a while.
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