This week’s financial spread betting update is now available and can be read by clicking here.
So today is the end of the month and also the end of the best 6 month of the year for stocks. Tomorrow is the start of May and the old trading adage “Sell in May and go away” comes to the minds of traders. Whether that turns out to be the right option remains to be seen. It is interesting to note that the 2nd May last year did indeed turn out to be a good selling point as that was the high of 2011 and stocks declined for the rest of the year and did not regain those highs until February this year. I’ve never been a big fan of seasonal indicators but do look at them just to see what other traders are looking at and that is probably their only real value. Going back to 2010, the high came a little earlier, on the 26th April and the market was then lower and did not regain those highs until November.
So far this morning stocks are flat but as we cover in this week’s update, they have regained their 50 day moving averages. One pattern that does suggest resistance is on the S&P 500 where an advance block pattern has formed, which indicates selling at the highs of the past 2 days. If that is cleared then a test of the highs of the year may well follow.
This week’s financial spread betting update begins with: The past week has seen stocks continue their short-term recovery and move back above their respective 50-day moving averages. The long-term trend is still very much up for stocks and a continuation towards the highs of the year is now a possibility once again..……continue reading by clicking here