Still in cash; it’s “Sell in May” time

GMI5/6
GMI-26/8
T210877%

With very few stocks hitting new highs, my strategy of buying strength is not very profitable. I am torn between following my GMI indicators, which are on a Green signal, and my reasoning, which suggests that the market is misjudging the length and severity of the current economic decline. I prefer to remain on the sidelines.  In addition, SPY still appears to be in a Stage IV decline. See this weekly chart. If this rebound fails, it will get bloody. And it is Sell in May and go away, come back at Halloween time.

 

2 thoughts on “Still in cash; it’s “Sell in May” time”

  1. This struggle is every conservative investor’s struggle. It’s like the episode of Seinfeld where George starts doing the opposite of what his instincts tell him to do.

  2. Thank you Dr. Wish. After finding your website I find it very informative and a nice alternative voice compared to IBD.

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