Monday, May 28, 2018

Don't   "Sell  in  May  and  Go  Away"


Money is made in the market by staying engaged with the markets on a daily basis.  Over the years we have heard so many professional managers tell us:

"Sell  in  May  and  Go  Away"

They are all wrong in making such statements.  Its no wonder that the top 100 fund managers identified by Barrons publication, under performed the $SPY (a barometer of general market performance) by  -4.04%.  in 2017.  You can review my blog of April 29th where I highlighted my views on the hedge funds and professional money managers supported with the data from the Barrons magazine, April 30th Issue.  You have to be data driven and not listen to such non sense.  Let me highlight the data I have analysed over this Memorial Day weekend. 

Data:

1. Historically, looking over the data for the last 50 years, $SPY  had an average performance of  +0.16%.  May of 2018 so far has done  +2.89%.  $QQQ  has done even better ... + 5.17%

2. Historically, looking over the data for the last 50 years, $SPY  had an average cumulative performance of  + 0.44%   for June, July and August.  In 2016 however it was  +3.89%  and  + 2.51%  in 2017.  $QQQ  did a staggering  +5.64%  in 2016 and  +3.48%  in 2017.

Is it any wonder why the average 100 top professional hedge funds identified by Barrons magazine underperformed in 2017?  These professionals could learn from Retail investors and have data drive their investment decisions.  As I often say  "You Snooze, You Lose".  Staying engaged with the markets on a daily basis is the way to profit in the markets.


Market  Outlook


Our last  "Follow Thru"  day of May 10th seems to be holding up pretty well.  For the last 3 weeks, all the 3 major indexes -  $SPY, $QQQ  and  $DJI  have been holding up above the 8 day exponential moving average (ema).  Trading volume has been light and that is what you want to see while the indexes are forming tight flat bases.  $VIX (gauge of fear index) is also hovering below the 8 day simple moving average (sma) around 13  for the last 3 weeks.  Its never a bad idea to buy your portfolio protection now with the  $VIX  being so low.  Since summer months tend to be volatile, it may be prudent to give your stocks some more room to breath if you have gained profits of  +8%  or more.  It's also a good idea to lighten up on those positions that are not performing as well as the  $QQQ   is.


Mentoring  Program


Our schedule for mentoring new students is filling up fast for the summer months.  There are very limited number of slots available.  Market usually takes a breather during the summer months and its an ideal time to refine your trading skills.  Secure your spot now before those slots fill up.

Schedule a  FREE  30 minutes of  'Discovery Call'  with us and let us help you profit in the market.  Don't continue to lose money in the market and fail to out perform the market.  Let us show you how to look for Growth Stocks and how best to profit from it.


Happy Trading!



Amin



   

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