May is usually that dreaded month that selling happens but as I pointed out in my last post you could still wait until the Fed announcement or that major company (like Walmart) has given report of their earnings, and with that the earnings season has come to an end. Major indices have reached record highs and my reading is that it is not going to continue soon after. Maybe after this week when the GDP figure is announced on Friday that will convince people to either buy or sell more. I am likely to stay out of the market as I am moving house and so many things on my mind, so I am in cash already.
If you need to be convinced that the highs are petering out, look at gold, starting to go down below the 1200 level and Goldman Sachs projecting about the strength of the US dollar given the interest rate outlook in this article. The strong USD was a major dent to overseas profits of big companies like Microsoft and Pepsi. GDP number was very weak the last quarter owing to the bad weather but we already know most of the economic reports on manufacturing, housing, even consumer were weak so it may not be a big mover of the market anymore.
About Greece, it seems that people are shrugging it off already, but as the markets have reached record highs, I wouldn’t hazard big positions on the market in case it just doesn’t go right. (Things can quickly go to poo when that happens! )
Anyway for a piece of good news, the European economies are getting better and getting a boost with the ECB plan to even advance their bond buying, so there are opportunities if you know which way the money goes that I discuss extensively in my Low-Risk High-Reward Stocks Investing workshop – coming soon in webinar format! Email me at charmel@highheeledtraders.com to register your interest and get my proven insights.
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