It’s so nice to start a new month. Unless that month is May, when seasonally, the stockmarket declines! “Sell in May and go away” got its origins from the Stock Trader’s Almanac since 1950.
You do however need to exercise discipline and not just “sell” but sell according to what your system dictates. I say this because you might be selling early in this bull market (and blame me!), your decision-tree and system should be your guide. As trends go, the major trend is still bullish with DJIA reaching record high as of today, and the broader S & P 500 also on uptrend (chart here). Bloomberg presents evidence in a video of “sell in May and go away” — but you need not fret if you are holding sectors like healthcare etc. Check out that video below.
I have just gotten back from my travels and workshops in Sydney, Australia and Singapore plus the Investing Success Bootcamp last weekend in Manila, and it’s been a fantastic experience being with people with so much commitment and generosity in sharing their experiences. With the Bootcamp, since it was held for 2 days and we had much more time for discussions, it was a bonus for me and the participants to develop a friendship and exhibiting “traders’ personalities” that enlightened and enriched our perspective. There was even a joke that for one participant to appreciate what interest rates really mean to the economy, he should get credit cards. (Or better yet, let us girls use it. LOL)
So finishing my workshops, I was easing myself back into the market and seeing BHP was above 38.20 last week (top of the range), was looking at it for a shorting opportunity. I was right and it fell to below 37.38. But didn’t enter the market yet as I need to do some more preparations like planning my new position sizing and a refresher on my peak performance strategies. It’s noteworthy though that BHP and other Australian banking stocks are in the red given the US bullish results lately. There’s the markets for you. (Like there was no selloff just a month ago and we’re hitting highs again — whattttt!!!! ) So it is important to realize that the purpose of our system is to help us make money – not to explain the market!
So for those who missed my Low-Risk High-Reward Workshop, in this great wide world we live in, webinars are now available and you can learn in your own comfort and time. I will post a schedule for the month of May. Email me at charmel@highheeledtraders.com to register your interest.
Happiness and abundance!
Charmel
