Monday, May 19, 2008

Sell in May and Go Away..... Again?


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With the way that SPY/ES has been acting so bullish in the past week, even I thought that there would be a rally well into June.

This is the second selloff since the rally began in mid-April, another warning sign that this rally is getting stale pretty fast. The steepness and urgency of this selloff (note how steep the slope of the selloff is....!) is leading me to believe that the rally might be over. However, the previous selloff (May 7) had no follow thru, so the onus is still on the bears to show us that the rally is indeed over. I think we will see the decision played out in the markets this week.

Also, as indicated in my posting, I am out of all of my Visa positions. Will be looking for another entry once the dust settles on today's selloff.

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