Follow on Google News News By Tag * Stock Gains * First-quarter Earnings * Penny Stocks * Micro Cap Stocks * Making Money * Stock Picking * More Tags... Industry News News By Location Country(s) Industry News
Follow on Google News | The Best Stock Gains—When to Come Back for ThemWhat the best six months of the year for stocks are and what we can expect from the market over the summer months.
By: George Leong And whether it is penny stocks, micro-cap stocks, or S&P 500 companies, you have to be impressed by the sustainability of the positive sentiment. The real test now comes as stocks edge higher. We need to see a strong break higher or risk a relapse. Did you also realize that the best part of the year for making money is over? The period from November to April is historically the best six months of the year for stocks, according to The Stock Trader’s Almanac. This period has come to an end. May started with three down days. In addition, the six months from May to October have been the subpar versus the November-April period. This is a generalization, so good stock picking will succeed. A red flag remains, as the associated trading volume continues to be light on up days, which fails to help confirm a strong buy signal. Unless we see increased volume on the up days, I question the lack of mass market participation in the current rally. The near-term signals have a positive bias, but watch the neutral Relative Strength and overbought condition. The sentiment in the market remains bullish. The trend of the NYSE new-high/new- The overall market is drifting slightly lower. As of May 9, about 76.42% of all U.S. stocks were above the 200-day moving average (MA), down from 81% a month ago. For the shorter-term moving averages, the monthly decline has been more significant. For instance, about 48.77% of U.S. stocks are above their 20-day MA, down from 70.22% a month ago. There could be a pending market decline. With the two-year bull market, investors and traders are looking for a reason to sell and take some profits in the summer months and come back in the fall. I feel somewhat nervous going forward in the summer months and think that stocks may drift in the absence of any major catalyst. Stocks are already discounting positive economic news and, with earnings coming to an end, stocks are likely to drift. Retire on This One Hot Stock! This stock is up 232% since we first picked it. Our expert analysts say it will go up another 100% in the next 12 months! Our top 19 stock picks were up an average of 173.57% in 2010 (not a misprint). See where we are making money in 2011 and get our combined 100 years of investing experience working for you starting today. Get your FREE report on our top stock pick immediately here. http://www.profitconfidential.com/ # # # We publish Profit Confidential daily for our customers because we believe many of those reporting today’s financial news simply don’t know what they are telling you! Reporters are trained to tell you the news—not what it can mean for you! End
Account Email Address Disclaimer Report Abuse
|
|