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Chart of the Week: Sell in May

Posted By Barry Ritholtz On June 16, 2006 @ 2:44 pm In Markets,Technical Analysis,Trading | Comments Disabled

Here is the classic version of the Sell in May chart:

Sell_in_may [1]

Source: Chart of the Day  [2]

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In 2004, we  noted you could Sell in May (but don’t go away) [3] — part 2 is here [4] — as a tradable bottom was forming; Markets bottomed for the pre-election rally in August.

In 2005, we repeated the same view [5]. The market struggled upwards after the May lows, and made some progress (not a whole lot) until Katrina.

Selling in May this year turned out to be a
good strategy.

The bounce that started Wednesday can run for a coupla
weeks to a month or so, but should not be mistaken for anything but a
bounce. This ultimately implies a late Q3/early Q4 low

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Real Estate Appraisal Fraud on the Rise [8]

Short sellers: A rarer breed of investing [9]
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Why Consumers Seek Value at the
Top and Bottom of Markets

Death by DMCA [11]

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Quote of the Day

In a Bear market, everyone loses. AAnd the winner is the one who loses the least.  -Richard Russell, Dow Theory Letters [12]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2006/06/chart-of-the-week-sell-in-may-2/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/sell_in_may.gif

[2] Chart of the Day  : http://www.chartoftheday.com/

[3] Sell in May (but don’t go away): http://www.thestreet.com/p/_rms/rmoney/barryritholtz/10158873.html

[4] here: http://www.thestreet.com/p/_rms/rmoney/barryritholtz/10159011.html

[5] the same view: http://www.thestreet.com/p/_rms/dps/cc/20050502/columnistconversation1.html#entryId10221003

[6] Why Popular Stocks Are a Sucker’s Bet: http://biz.yahoo.com/ms/060503/162973.html

[7] The virtual moneylender: http://www.salon.com/tech/feature/2006/05/22/prosper/

[8] Real Estate Appraisal Fraud on the Rise: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BEB7E1C20%2D54FE%2D451D%2D8B4C%2D80C3FBD3D215%7D&siteid=mktw&dist=nwhpf

[9] Short sellers: A rarer breed of investing: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2202E518-B68A-41E4-84E3-9A1B828FF27D%7D

[10] Iran: Last Exit for Diplomacy: http://www.project-syndicate.org/commentary/fischer1

[11] Death by DMCA: http://www.spectrum.ieee.org/jun06/3673

[12] Dow Theory Letters : http://ww1.dowtheoryletters.com/

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