Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

MV Weather Report: Will May Give Bears Their Day in the Sun?


Rain or shine, we review the day''s biggest stock stories.

April showers bring May flowers... but this was the best-performing month we've seen in 9 years. Taken together, March and April were the best 2 months since 1938 - great for the bulls, but awful for the bears.

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!
Position in SPY options

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos