Sunday, March 31, 2013

What is in store from April to June ?

Q 1 has ended with major gains & major benchmarks being shattered.

Now we are entering Q 2 which has the famous month of May with a scary "sell in May & go Away" mantra ?

SO..what is in store for Q 2......

Chinese economy is in a holding pattern around 7.5%

Indian economy is growing @ 5% slow clip


South America is sluggish


Europe is trying to come out of recession


US & Canada may hit 3% growth rate


What kind of TAPE action is expected in an improving scenario.

I have a feeling that Q 2 may have initial burst of enthusiasm in April with new all time high in S&P 500......

BUT MAY may bring WEAK TAPE to scare many......

I expect June to be weak also......

Why do i expect May & June to be weak?

Because Summer orders are weaker for technology as a seasonal pattern.....

Summer is also shutdown time in Europe


Summer focus in North America is on vacation & taking it easy.


I expect July to start a new rally........

I do not expect a major correction but a 5% pullback is OVERDUE..which is like 80 S&P 500 points......that may bring the indices down to near 1500+-

Many participants need to plan for something like this as a "strategy" or else they may be extremely vulnerable to haircut in equity...

Knowing seasonal trend can be good for your financial health......

BLOG does NOT give buy or sell.

Saleem

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