BUY in MAY..then go away !!!!

There is a latest buzzword on wall street that says "sell in may & go away" another INSTANT solution to a very complex world of investing.

The only logical solution to a very complex world of investing rest with one simple slogan which I have liked & practiced......... and that slogan is :

"Buy Low & sell HIGH"

This reality does not take a breather in any month including MAY.

Why there is such an interest in selling in MAY approach.......because Q4 & Q1 earning reports are generally strongest and Q2 & Q3 are seasonally WEAKER.This is a well known trend for technology & retail stocks.

Even in those sectors there is always stocks which are selling LOW for multitude of good reasons like temporary GLUT in inventory,product TRANSITION or bad EXECUTION.The idea is to recognize those TEMPORARY situation and BUY.

Some sectors generally do well during May to Sep like Oil,Gas,Refineries,Oil conglomerates,Base metals,Gold,Uranium.......and many many Exploration companies in Oi/Gas/Gold/Uranium/Base metals.

So the idea is to find companies with strong TURAROUND in Technologies & Retail plus capitalize on the stronger sector during May.

Strong technologies stocks are getting OVERBOUGHT & will get MORE overbought in the next 3 weeks of May........so a PRUDENT approach will be to LOCK PROFIT by 3rd week of May.

In my next report I will try to identify stocks which are technically strong or week as per many TECHNICIANS.

In the meantime always do your OWN due diligence.

This BLOG does not give BUY or SELL .BLOG is an educational tool.

Good luck on your selections.

Saleem