Why
we say Sell in May and go away?
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I
was setting here pondering that question. So I decided to see if there
was any truth to it. In Telechart I created 10 PCFs. One for each of the
last 10 years. I think the results speak for themselves. In the first
chart I looked at the maximum high at the end of May and the minimum
low price at the end of August. The watchlist I have shown is the
indices that I follow on a daily bases. The good news was that not all
years were bad. The bads news is that there is so little good news. The
2 charts are not sorted on the same criteria so you need to check the
symbol to make comparisons.
 The next chart shows the maximum high at the end of May and the minimum low price from June through the end of August. This shows the maximum drawdown one would have experienced over the whole summer.  While this is certainly not a in-depth research project, I think it definitely shows why the saying "Sell in May and go away" has value. If you are a longer term trader/investor you may want to heed that advice. A few things that caught my attention was: 1 - Nasdaq 100 perfromance in 2008 and so far in 2009 are eactly the change. I had to double check my PCFs to make sure they were correct. 2 - The major drop in volume on every index. The reason this is so important is that if there is no volume that is telling us there are no buyers. When there are no buyers prices keep dropping until someone thinks they found a bargin. Personally, I think the summer is a great time to minimize your trading and maximizes your learning which is exactly what I am doing. Any trades I take will be short-term. Be sure you read the Worden Brothers information below.
I had some very positive feedback on this FREE 5 day course from Barry Burns. ... it's completely free. The course has 5 videos that walk you clearly through some of the most powerful trading material I've ever seen. You will get a day video each day. Each video has a short quiz as a refresher. I personally took the course, loved it, and learned a lot from it. Click Here To Get Your FREE Five Day Video Trading Course It is only fair to warn you Barry sells courses as well and you will receive emails from him. I like his courses and he offers a 90 day no questions asked,money back Guarantee. There were a few folks that purchased Barry's Fee courses 1 and 2. So far I have only heard good feedback. |
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Ramp now only $99
- Andy just put out an update. The last one before he announces the real-time service. At that time he plans to reprice RAMP. So now is the time to try it. Real-time pattern recognition software You owe it to yourself to check it out - at least the Free Trail Uses FREE Internet historical Data. So there is no Data feed cost. $99 is your total investment. . |
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| Worden Brothers Telechart and StockFinder software | ||
 
I
mentioned before that I had been studying and creating new trade
strategies using Worden
Brothers' StockFinder
I just found out Worden Brothers' is having a terrific sale until July 15th. If you are a new user or are already a Telechart or StockFinder user you can take advantage of the sale price. I can't recall ever seeing Telechart or StockFinder priced this low. I think what really makes this a great deal is you can get StockFinder for an additional $10 a month with Telechart. This link will take you directly to the order and Pricing page NOTE: The special pricing is only if you pay annually. If you let me know purchased either or both and I will glad to provide you assistance with the products. Send me an email at Kermitp@tradingourway.com and give me your user name. If you want to talk one on one about the products or any other subject include your phone number and a best time to talk.
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Summary:
As you can tell I don't spend a great deal of time trying to make these newsletters look pretty. I'd rather concentrate on having useful content. As always I want to hear your thoughts on these and any subjects. Please, feel free to send an email with your suggestions, complaints, and comments to kermitp@tradingourway.com Thank You, for taking the time to read our newsletter and good trading to all, Kermit Prather |
