MV Weather Report: Will May Give Bears Their Day in the Sun?
Rain or shine, we review the day''s biggest stock stories.
That being said, today's action might give us an idea of where the month of May is heading. This morning, the market spiked to a new high for this rally, to S&P 888. However, around lunchtime, it strangely reversed and sold off, closing unchanged on the day at S&P 872. The session had a range of 20 S&P points, which is extremely volatile. In the end, we ended up where we began.
There was a little more to today's session then may first appear. Today on the Buzz and Banter, Professor Jeff Cooper filled readers in on his thoughts:
"A perfected 720 degrees up from the March 666.79 low is 888.79. So, far today's high is 888.70."
Today's high was 888.70. Isn't that strange? Below is the Square of Nine chart Professor Cooper uses to determine his price levels each day. If it looks like gibberish to you, don't worry: Not many people know how to read it. But it's fun to look at, and adds context to Cooper's ideas, which were dead-on accurate today.
Click to enlarge
Will we sell in May and go away? That seems to be the popular consensus here, as many people believe the market is overdone on the long side. Many Buzz professors were adding to their short position today.
Here's a buzz from Professor Fil Zucchi:
"I've joined Prof. Tatro on the dark side of SPDR Retail (XRT), via September puts, and I've also slapped on some shorts in Ruby Tuesday (RT), Darden Rest. (DRI) and Brinker (EAT). Prof. Depew has discussed the bearish TD technicals in the restaurant space.
"I was tempted to go with the more sexy, higher beta names like Panera (PNRA) and PF Chang (PFCB) but the crowded short position in a squeezy market spooked me."
After this April, how can May possible be better?
Have a great night, Minyans!
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