Well, it wouldn’t be the month of May if investors weren’t asking the question: “Sell in May?”
Trading cycles and seasonal patterns show that selling strength in May isn’t a bad idea. In fact, it could be a decent strategy for skilled timers. Either way, it’s something traders should be aware of.
Stocks managed to only lose 0.4% last week (S&P 500 Index). It felt a lot worse… Next week will either confirm the support we saw late in the week (2035), or see another sharp decline lower. Should be interesting.
There are lots of great themes, research, and trading setups out there. Let’s take a look at this week’s “Top Trading Links” to get a gauge on where the market is at right now. Is it time to sell in May?
MARKET INSIGHTS
‘Sell in May’ acts differently in election years – Tom McClellan
The Black Swan Siren Song – Charlie Bilello
A breakdown of the two new Volatility ETFs – Bill Luby
Crude Oil is testing resistance while Crude volatility is testing support – Chris Kimble
Tom Lackey always does a nice job tracking relative performance: His latest RS movers list
Insights on the recently updated margin debt data – Jesse Felder
Short term trading results mean nothing. Here’s why – Steve Burns
Why investors need to lower their sights – McKinsey
Video: How to find anticipation setups – Pradeep Bonde
The most powerful principle in trading psychology – Brett Steenbarger
NEWS & OTHER RESEARCH
Why the U.S. trade deficit was so small – Political Calculations
Podcast: On developing Grit – Freakonomics
The unicorn financing market just became dangerous for all involved – Bill Gurley
How to build the self confidence you need to win in life – Hat Tip to @JFinDallas
How Testosterone and stress affect decision making – Wesley Gray
Starving Cancer may be a key to treatment – Science Daily
Methane is climate change’s hidden villain – Wired
Thanks for reading and be sure to check back next weekend for another round of “Top Trading Links”.
Twitter: @ATMcharts
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
