Sell in May, Go Away

Many of you might already heard of the phase - "Sell in May, Go Away!".  During the summer months, many stock buying and selling activities might be slowing down due to vacation season.  Stock prices usually go lower due during the summer season.  Hence, many investors usually sell during the month of May and buy back the stocks on the month of September.  I usually follow this theory as I am selling some of my holdings throughout the month of April ahead of summer season.  I will update on this website to see if the trend is correct for this year.

50 and 200 Day Moving Averages 101

One of the most effective and widely used technical trading tools is the simple moving average. The two averages that I looked at are 50 days and 200 days simple moving averages (SMA).

When I trade indexes, I usually look for those two averages and see how they perform over the year. A quick way to see whether it is a good entry point is to see whether the 50 days cross over and above the 200 days moving averages and via versa.

You can use google financial and other charting tools to do a quick technical analysis chart.