Frequently Asked Questions
Market Lab Report
What are your feelings of sell on Rosh Hashanah and buy on Yom Kippur? Market could pull back from here for a retest based on this. Therefore, what would you look for to turn negative short run?
I would focus more on price/volume action of your stocks, leading stocks, and the market averages. Studies such as sell in May, go away, and sell on Rosh Hashanah and buy on Yom Kippur have mild statistical favor, but the heaviest weighting should always go to price/volume action regardless of these studies. Keep in mind that even the worst month such as September which is down roughly 60% of the time going back many decades is still up 40% of the time. Dont let studies derail your positions. The best stocks can also often buck market trends or at least form constructive bases while the market is in correction.
Published: Sep 8 2010