Buy(or cover) in May and go away

Discussion in 'Trading' started by grendel, Apr 21, 2008.

  1. grendel


    Simple logic here:

    If: Bull Market
    Then: Sell in May and go away

    If: Bear Market
    Then: Buy(or cover) in May and go away*

    Logical progression leads to the down trend resuming later in the year, after a mid-year pause. This would mean commodities pause here and resume uptrend later in the year.

    Trend changes(bull to bear and vice-versa) need a shift in fundamentals. Fundamentals have not shifted out of Bear mode and this would corroborate the resumption of the Bear trend after the mid-year pause.

    Until fundamentals change:

    Mid-term - ranging with upside bias
    Longterm -down



    *edit* I wrote sell in bear market, but meant to write buy