Don't pay dollar to keep 2 cents when wrong. Cut your losses quickly. Trade what you see, not what you think.
Joined Oct 26, 2011
719 Blog Posts

Month of May – a historical chart review (or how valid is “Sell in May and go away”?)

From the weekly Dow Jones chart; since 2005, there were 4 downtrends and only 3 uptrends for the month of May.  If you looked back at the 4 downtrends, you could see the down weekly bar starting in either the 1st week or 2nd week of May.  Notice that last Friday close actually started off with a down weekly bar.  On top of that, you can see current price action is hovering around the high of May 2nd, 2008 which I see is  a major resistance.

In summary, statistically speaking, the odd is in favor of a bearish stance; therefore, be mindful if you are long.

Note: click on the weekly or monthly chart and then click on 1870 x 973 number right above the chart, the chart will expand to a more comfortable viewing size.

Below is the Dow Jones weekly Chart:

Below is the Dow Jones monthly chart:

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