Does "Sell in May" works in 2020?
See chart
You can see that SPX500 drop about 3.7% and DJIA drop 4.5% from 8 -13 May. Thereafter, it has been riding on a bullish trend.
Next, we were also educated from textbook that triple top formation is bearish. If we follow blindly and not react according to what we see "live" on the chart, then we would have missed the bullish move. Never mind the profits you make. The important thing is sayings like Sell in May, buy in December, sell with triple top, buy with double bottom support may not comes true all the time.
While past historical data and patterns serve as a guide, traders need to be nimble and remain alert to current trends and decide for themselves if they are to follow and expect the market to behave the same as it had previously.
Unless you are a long term investor with a long time horizon, then all this ups and downs will be meaningless to you. For traders, these ups and downs can mean your profits or losses for the day, week or month.
You can see that SPX500 drop about 3.7% and DJIA drop 4.5% from 8 -13 May. Thereafter, it has been riding on a bullish trend.
Next, we were also educated from textbook that triple top formation is bearish. If we follow blindly and not react according to what we see "live" on the chart, then we would have missed the bullish move. Never mind the profits you make. The important thing is sayings like Sell in May, buy in December, sell with triple top, buy with double bottom support may not comes true all the time.
While past historical data and patterns serve as a guide, traders need to be nimble and remain alert to current trends and decide for themselves if they are to follow and expect the market to behave the same as it had previously.
Unless you are a long term investor with a long time horizon, then all this ups and downs will be meaningless to you. For traders, these ups and downs can mean your profits or losses for the day, week or month.
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