Sell in May and go away

The S&P 500 continues its descent within a well defined channel. So far, if you sold the very first trading day of May you would be very happy. There is strong support around 129 in the SPY, but I think there is quite a bit of uncertainty about what is going to happen when QE2 is over. Will there be a QE3? The only thing I can do as a trader is to respect that trend and to look for some oversold opportunities for quick relief bounces.

I am patiently waiting for some opportunities to materialize while sitting on my hands. For example BTU would look very attractive around $53 and the Reward / Risk equation would be very compelling.

About Stock Trade Journal

The information in this blog is not investment advice. Please consult a financial advisor before investing. I have been trading stock since the 1990's and survived the .com crash. I am developing software applications to help me trade better and now I am making them available to help other traders. This blog is also a way to share my experiences and observations in the market.
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