Sell in May ?

Here comes May on Monday, 1st day of trading for this much feared strategy "sell in May and go away "......

Generally this fear in market is expected to last till October.....

October is known for many crashes, October of 1987.....

Nasdaq, Sox and Russell have made new all time highs in last 2 trading days....

SO...how  " sell in May & go away ".....will work out this time ?

Here is RSI reading on famous sector / index :

Nasdaq    72.87

Dow         60.73

S&P 500  60.57

Russell    57.34

SOX        54.15

As you can clearly see, that Nasdaq is overbought, while rest of sector in this market are not frothy @ all.

Generally when we hit May, there has been frenzied buying buying and most sectors looks overbought, not the case this time.

Based on recent TAPE, it is to be expected, that S&P 500 and Dow are ready to make new all time highs, they are roughly 17 points & 261 points away.....

Based on impending tax and financial reforms, that may add further catalyst to this market.

Earnings have been better than expected, which is another reason why further buying may take place.

Technology sector are clear winner this time around, which is a very good thing for the direction of this market.

An overweight in technology have been saving many portfolios.

AMD , AAPL and FB are reporting on Monday, Tuesday and Wednesday...these reports may push Nasdaq much higher.......

Markets do digest excessive gains every so often by pulling back, but, it is expected, that trend is your friend.......

SO do not sell in May......there is more excitement till October.....

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem