Well its coming up to that time of year again and with now just a little over 1 week to go I thought I'd ask the $64Billion dollar question, will the onset of May see the old adage of selling?
My answer No, if anything a correction will come in late May, ie the last few days,
Well because on Thursday the World had its excuse to correct, China fell nearly 5% on that day taking Hong Kong down about 2.5% and Japan about 1.5%+
I thought yep here we go correction time, base metals were sold off and everything looked set to begin, but the FTSE as usuall was waiting for the DJIA for direction,
Long story short the US Mkts hardly blinked and as a result niether did the FTSE, on Friday the Aussie Mkts were hardly affected and base metals strengthened, China too regained almost 4% on Friday and finally to finish off the week, the DJIA rallied too a new record high.
So ask yourself this, what exactly will the catalyst be to trigger a Sell in May situation?
Mkts rarely perform to expectations, so with everyone expecting a sell off in may, my bet is it won't come, instead as punters breathe a sigh of relief that the sell in May didn't come and begin to pile back into the mkt late May/Early June Whamoo we'll get a correction, the US will be the trigger