Tackle Today: Sell in May and go away | Tackle Trading
≈ Be wary of sayings ≈
On Wednesday of this week, the calendar will turn to May 1st. On this day in history, the Empire State Building opened in 1931 and ten years later Citizen Kane would premiere. It is also singer Tim McGraw’s birthday on May 1st so be sure to get your birthday texts in early.
What will also occur on May 1st is thousands of stock market participants will make a joke/serious remark about “Sell in May and go away.” Some will even pass it off as ancient wisdom. For those unfamiliar with the expression “Sell in May and go away” is an expression used by investors who believe stock prices will decline between May and October. These investors subscribe to seasonality or calendar theories and thus look to exit the market during this period and look to move back into the market in November.
Those that sold in May and didn’t enter until November certainly missed bullish market conditions the last two years. With there is always a kernel of truth in many stock market sayings, be wary of making investing decisions based on clever sayings.
Chart of the Day: S&P 500 (SPY)
While it certainly has been a roller coaster of a six-month period of the S&P 500 has an excellent chance of setting an all-time high this week. Few would have saw this coming so quickly at the start of the year but the short-term trend this year has been relentless.
Video of the day: How to Review a Bull Put Spread in ThinkBack with Thinkorswim
Coach Tim Justice explains how to review a bull put spread using the ThinkBack tool in Think or Swim.
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.
Originally published at https://tackletrading.com on April 29, 2019.
