Tuesday, May 22, 2012

Sell in May and Go Away

I was looking at some similarities between last years drop and how we are measuring up this year.  It seems that the sell in May crowd came about the same time as it did last year last year.  The same pattern last year developed a break in the bull trend line from the fall lows, then it traded against trend line resistance and in each case there was a 7% drop.  This year it happened more quickly  and leading into the holiday weekend I like the chances of next week possibly having the same out come last year which was a 2% decline or somewhere in that neighbor hood.  Now as we all know past performance is not indication of future performance but it seems to me that past behavior is resurfacing this year again.


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