Summertime Trading Blues? We Can Help…
You’ve heard it before: sell in May and go away.
But do you know the numbers behind that adage? According to S&P’s Sam Stovall,
since 1945, S&P 500 stocks gained an average 7.2% between November and April.
Between May and November, the figure drops to 1.5%. Reasons for this seasonal
bias include: the April 15 deadline for IRA investments and the fact that most
pension and 401(k) contributions happen in January. In addition, mutual funds do
“window dressing”–which includes dumping losing stocks–before the end of their
fiscal year in October.
That said, there are certainly opportunities
during this period, especially if you shorten your time frame a little bit. Just
like there are often strong rallies in a bear market, there are sometimes decent
tradable during the May – November period. Slowest is the summer, when many
traders are on vacation. All is not lost, however. You just need to be more
selective and careful. Pick and choose your setups. Stick to your trading plan.
Maybe trade in the morning only and take the rest of the day off. (I’ve talked
with many traders over the years who’ve told me they do well in the
first hour–only to give it back later in the day).
If You Trade Options…
Try the
TradingMarkets Professional Options Trading College.
If You Day Trade…
…the
Alvarez Factor could
potentially really improve your trading!
If You Swing Trade…
Attend the
TradingMarkets Swing Trading College!
See
Steve Primo’s article for a recent trade example.
The New, Improved
TradersWire
If you haven’t been in TradersWire for a while,
swing by next week–you’ll be pleasantly surprised. We’ve made a lot of changes,
including precise buy and sell alerts on stocks and E-minis and Mini-sized Dow
contracts, expanded education and trading tips. And as always, there are some
good traders in the chat room. I’m not ashamed to say that I’ve learned a lot
from some of these traders through the years, and I’m willing to bet you could
learn something, too. So come on by, we’ll
see you in
TradersWire on Monday!
Big Cap
Earnings Announcements for the Week of June 13th
Company |
Symbol |
Date |
| Best Buy | BBY | Tuesday, June 14 |
| BMC Software | BMC | Tuesday, June 14 |
| Lehman Brothers | LEH | Tuesday, June 14 |
| Pier 1 Imports | PIR | Tuesday, June 14 |
| Bear Stearns | BSC | Wednesday, June 15 |
| Tommy Hilfiger | TOM | Wednesday, June 15 |
| Adobe | ADBE | Thursday, June 16 |
| Goldman Sachs | GS | Thursday, June 16 |
| KB Home | KBH | Thursday, June 16 |
| Winnebago | WGO | Thursday, June 16 |
| Circuit City | CC | Friday, June 17 |
Scheduled Stock Splits for the Week of
June 13th
Company |
Symbol |
Ratio |
Payable |
Ex-Date |
| Rocky Mountain Chocolate | RMCF | 4-3 | Jun 13 | Jun 14 |
| Income Opportunity realty | IOT | 3-1 | Jun 14 | Jun 15 |
| Horizon Health | HORC | 2-1 | Jun 15 | Jun 16 |
| CBL & Associates | CBL | 2-1 | Jun 15 | Jun 16 |
| O’Reilly Automotive | ORLY | 2-1 | Jun 15 | Jun 16 |
| Nicholas Financial | NICK | 3-2 | Jun 17 | Jun 20 |
Upcoming Economic Events for the Week of
June 13th
| Date | ET | Release | For | Consensus | Prior |
| June 14 | 8:30 am |
Retail Sales | May | -0.2% | 1.4 |
June 14 |
8:30 am |
Retail Sales (Ex Autos) | May | 0.2% | 1.1% |
June 14 |
8:30 am |
PPI | May | -0.2% | 0.6% |
June 14 |
8:30 am |
Core PPI | May | 0.2% | 0.3% |
| June 15 | 8:30 am |
NY Empire State Index | Jun | 5.0 | -11.1 |
June 15 |
8:30 am |
CPI | May | 0.1% | 0.5% |
June 15 |
8:30 am |
Core CPI | May | 0.2% | 0.0%` |
June 15 |
8:30 am |
Business Inventories | Apr | 0.4% | 0.4% |
June 15 |
9:15am |
Industrial Production | May | 0.2% | -0.2% |
June 15 |
9:15 am |
Capacity Utilization | May | 79.3% | 79.2% |
June 15 |
2:00 pm | Fed Beige Book | |||
| June 16 | 8:30 am |
Initial Jobless Claims | 06/11 | NA | 330K |
June 16 |
8:30 am |
Housing Starts | May | 2.05M | 2038K |
June 16 |
8:30 am | Building Permits | May | 2.1M | 2148K |
June 16 |
12:00 pm | Philly Fed | Jun | 10.0 | 7.3 |
| June 17 | 8:30 am |
Current Account | Q1 | -$189B | -$187B |
| June 17 | 9:45 am |
Michigan Consumer Sentiment | Jun | 88.0 | 86.9 |
TradersWire Tour
Every Thursday at 9 AM PT (Noon ET) I give a
20-minute audio/visual presentation on how you can use
TradersWire to help your trading. Join me…Click
here.
Have a great weekend!
Brice
P.S. Stay in touch with the latest happenings at TradingMarkets.com.
Check
What’s New @ TradingMarkets on a regular basis.