Sell in May & go away...another wall street tradition....
Why sell in May.....that needs to be probed...
May June July & August are summer months
Europe shuts down for vacation....
USA also follows vacation schedule...
Corporation for the most part treats these 4 months as slower sales
Many factories have down time in Summer...
Sales & earnings are much lower in Q2 & Q3......
That is why focus shifts away from stock market worldwide.....
Fall is when after US Labor Day, we go back to full tilt production...
Back to school is in focus
Black Friday is in focus
Finally Christmas is in focus.....
That is why Q3 & Q4 is so important for Sales & EPS
For this year which is 2021...there may be a shift due to COVID-19
Tourism / Travel related Industries may be in higher focus due to 1 full year of shutdown / lockdown
Hardware technology companies may see sales & eps stagnation or even slowdown more than before
Many technology companies have seen Advanced Sales due to stay home / work from home phenomenon
Back to stock market, they have corrected. most of the sectors are oversold..
Two of the area which are still strong and " not overbought " are S&P 500 & XLB...they are sporting RSI of 61.95 & 60.65....which Is considered healthy......
To deal with sell in may syndrome few ideas are given.....
Book your profit in most technology stocks.....
Be diversified with Financials, Oil / Gas related, Casinos, travel related & precious / base metals as overweight
Good luck with your own thesis about May.
BLOG does NOT give buy or sell
Saleem
11 comments:
Hi Saleem,
Last week: +0.01% (YTD: +17.68%)
Notable Leaders: GMBL PSNL FDX, SNAP (from purchase)
Notable Laggards: PATH ESTC, PLAY RUN AGCO QRVO (from purchase)
It was a pullback week for almost any stock that reported earnings. I came into the week with plenty of cash to buy dips, but many stocks dipped even further than the initial drops. I think these are often cases of profit taking instead of calling tops, as overbought and sentiment conditions have cooled from extreme levels. This could set up for a generally grinding higher market. The one glitch in the bull could be rising input costs which need to remain to be seen as transitory.
Holdings: FDX AGCO PSNL QRVO BHVN SNAP ESTC PATH MOS PLAY RUN DDD, cash 21.6%
Stocktrader
Hi Saleem,
Bought AVLR @ 142.84
A positive analyst note and continued momentum could propel shares.
Stocktrader
Hi Saleem,
Bought PLCE @ 80.25 on great results from CRI and high short interest.
Stocktrader
Hi Saleem,
Bought HUBS @ 530.64 on the pullback and small business exposure as the economy recovers
Stocktrader
Hi Saleem,
Sold MOS @ 35.18 now that I have agricultural exposure through AGCO.
Stocktrader
Hi Saleem,
Sold RUN @ 49.51 as I re-evaluate the best alternative energy play.
Stocktrader
Hi Saleem,
Bought FSLR @ 77.38 on the pullback from highs.
Stocktrader
Hi Stocktrader,
Last week UP .41%
YTD UP 4.93%
Saleem
Hi Stocktrader,
Good luck with AVLR HUBS FSLR & PLCE....
Saleem
Hi Saleem,
Bought small GMBL @ 12.05 avg
Stocktrader
Hi Stocktrader,
Good luck with GMBL...
Saleem
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