Tuesday, May 06, 2008

Sell in May and Go Away?

A brief look at some sector trends......

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Solar stocks was a recent favourite of short sellers, but I sense may be about to change after today's sector wide up move.

Playing oil stocks is a bit more difficult, since you would be obligated to monitor how the CL futures are being whipped around in addition to the volatile sector movements. But seeing a sector wide uptrend like this is probably what keeps the traders coming back to play again.

The whole shipping sector was in a sector wide uptrend last year, and it looks like round 2 of that uptrend is taking place now.

I am using the above stocks (and indices) as "tells" of the overall health and direction of the market. Right now, these tells are indicating a healthy market, however some signs of a potential change in trend are starting to show up as well.

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