30 SUMMERS AND COUNTING:
Charts review of 30 summers and counting show less than an 05% average return on investment bets during the summer. Of the 2000 major ETF managers in just the USA 1900 plus will be on vacation retreats licking their profits off the boat dock all summer long.
The rest of the world is worst taking four months off and truly trolling. The big Players are typically:
- Taking profits in May and sailing away for the summer
- Adjusting portfolio’s for the summer “who cares” market 30 charts later
- Sell in May until Labor Day when the big boys come back to play ( and girls )
- Velocity trading depreciates all summer long
- The volume and velocity just lack heart regardless of the news
So the volatility will be dramatic but the outcome is likely to be chart # 31. For most selling in MAY and going away is simply a no brainer. They have MADE THEIR PROFITS in the largest peak time run up following a new President in all but a handful in history. They have those profits locked in. Before the market goes sideways – profit taking seem sin order.
Is this a market correction?
Or is this a pause of volume trading for the summer?
Is this a SELL IN MAY AND GO AWAY tradition?
I think so.
Is this a real correction?
Depends on the NEWS and sound bytes after Labor Day when 2/3rds of all velocity trading is going to unfold to January. It will become CRAZY SPACE after Labor Day of that you can be sure. By then congress will define its lack of function or its move into real progress for the nation. We’ll know.
Investors will know.
And the MONEY WILL MOVE.
So watch the timing now as you may see a little rush up then a SELL IN MAY and GO AWAY effect. Don’t get caught in a fools rally.
Berny Dohrmann – FOUNDER CEO SPACE May 22nd Orlando – you should come