Trader Mike

Most of you have heard the saying “Sell in May and Go Away“. That certainly would have been good advice so far this year. The S&P and Dow are down 1% and 2.6% respectively for the month. The NASDAQ is actually up 0.15% for the month, so maybe just the ‘go away’ part of that saying should apply to the NASDAQ (so far). The NASDAQ chart shows why this market has been so tough the last few weeks.

Over the last 17 trading days the NASDAQ has basically gone nowhere. 13 of those days had opening gaps and then no follow through. 11 of those 17 …

Once again May is upon us. Many a researcher has pontificated on the performance of the market between May and October. No doubt these clowns, er, experts will be all over CNBC today. I guess I’m just skeptical by nature, but I don’t like to follow seasonal patterns. I figure I’ll just let the charts tell me what to do. I get even more skeptical when the pattern is so widely known. Add that to the fact that there are so many bears right now, and I think we have the makings of an explosive rally. Let’s see if we can get a summer rally this year.