Sell in May and Go Away

Sell in May and Go Away

This month's sell off began on May 4 and May 5, when the Dow Index
failed to break above the yellow signal line. Once the green signal
line crosses the yellow signal line, prices usually fall to the next
level of support at the red signal line. Over the next 3 days, if
the yellow signal line falls below the red signal line, we will begin
a cyclical bear market lasting 9 to 18 months. This is not good news
if you are still in growth stocks. You just never know if the market
will begin a panic sell off to new lows. Despite all the optimism by
the cheerleaders, nothing can stop the twinge of panic in the bull
herd stampeding to new low. However, this is the first test of the
red signal line will usually hold for a bounce upward to the yellow
signal line. For those who have the harmonic stock clock program,
notice that on Thursday, the Dow index closed on a harmonic base
number and on Friday the index close 1 point off a harmonic base
number. All "black Monday's start with a Thursday, Friday, sell off,
cumulating into Mondays major sell off. Today's sell off would not
be a "black Monday" sell off, the market was highly contained, there
were no trading curbs in effect. The advance/ decline line would
normally cause the market to hit the curbs, but then program trading
would have been halted, so today's trading was very orchestrated to
keep program trading open. Monday's close was again on a harmonic
base number, while the lows exceeded the Harmonic Heartbeat of 122
today. I suspect the market will try to bounce within the next 3
days, barring any geopolitical events that will scare the bulls even
more. Meanwhile, the U.S. Dollar is surging, as always when there
is a worldwide flight to quality. The U.S. Dollar, as predicted once
it crossed the yellow line, has moved upward to the red signal
line. In the post at the beginning of the year, "home work", I
explained the relationship between commodities, bonds, currencies,
and the stock market. I also explained why the Fed is not your
friend, and they are always "behind the curve" when raising or
lowering interest rates. For traders, this is the best time to make
money, when prices are falling, since they always fall faster than
they rise. Howerver, for long term investors, it may well be nail
biting time as they watch their paper profits disappear once again.
This year, unlike last year, may be the year of "sell in May and go
away".

God Bless
Doc

Doctrader's Harmonic Stock Clock

Doctrader is here to help you find a better solutions for your long term financial wealth. If you have been a "buy and hold' investor for the last 10, 20, or 30 years, it may be hard for you to understand that the financial world of investing has changed. The Market Media Matrix has everyone in it's grip with the by merging all informational sources into one big conglomeration. Thereby narrowing your ranges of independent thought and creative ideas.
There are many financial tools available to you, through the internet and through this web site.

Yet, despite all the available resources at your disposal, most people will not take the first step in changing what they have been doing financial.

If by reading my thoughts and learning from my experiences (ie.mistakes) , I can get you mentally prepared for the next bear market, then my mission is accomplished.



God Bless


Doctrader

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