≈ Be wary of sayings ≈
On Wednesday of this week the calendar will turn to May 1st. On this day in history the Empire State Building opened in 1931 and ten years later Citizen Kane would premiere. It is also singer Tim McGraw’s birthday on May 1st so be sure to get your birthday texts in early.
What will also occur on May 1st is thousands of stock market participants will make a joke/serious remark about “Sell in May and go away.” Some will even pass it off as ancient wisdom. For those unfamiliar with the expression “Sell in May and go away” is an expression used by investors who believe stock prices will decline between May and October. These investors subscribe to seasonality or calendar theories and thus look to exit the market during this period and look to move back into the market in November.
Those that sold in May and didn’t enter until November certainly missed bullish market conditions the last two years. With there is always a kernel of truth in many stock market sayings, be wary of making investing decisions based on clever sayings.
Chart of the Day
S&P 500 (SPY)
While it certainly has been a roller coaster of a six-month period of the S&P 500 has an excellent chance of setting an all-time high this week. Few would have saw this coming so quickly at the start of the year but the short-term trend this year has been relentless.
Video of the day
How to Review a Bull Put Spread in ThinkBack with Thinkorswim
Coach Tim Justice explains how to review a bull put spread using the ThinkBack tool in Think or Swim.
Today’s line up
Traders Lounge 11PM EST
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Halftime Report 12:30PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
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