Tuesday, April 28, 2015 EST
Many investors have heard the term "Sell in May and Go Away" but have little information to make the decision if this is a good investing strategy. 

Recently while reviewing blogs online there was a post saying to "Buy Utilities in May using XLU" as a way to invest with the "Sell In May" theme in mind. BUT is XLU a good way to go when looking at Historical Data?

Let's review some seasonal return charts and see what history has to say on the matter of Sell in May and Go Away.

These charts can be found online at MTR Investors Group (www.mtrig.com) or on Investment Foresight (www.InvestmentForesight.com) plus seasonal charts on thousands of stocks and ETFs.

Bonds

First up on the list are Bonds. If Sell In May applies to stocks, does it apply to bonds as well?  The seasonal chart below is for the BND ETF. Based on 8 years of data Bonds are basically flat in May and do not return to profit until July.

Sell In May Bonds

Stocks
Now let's take a look at Stocks in May.  Using the DIA ETF based on 15 years of data Stocks are down on average in May and for the most part (on a historical basis) stocks return flat to negative until October.
Sell In May Stocks Utilities
We see that Stocks and Bonds are typically down in May. What about the idea of running to utility stocks for safety and return.  When the market goes down you can be sure Utilities will go down as well.  Here XLU returns on average a 1/4% in May based on 15 years of data. Positive returns happen about 65% of the time.Sell In May XLU

Gold
You may think well GOLD must be the place to be in May? Sorry to disappoint. Gold has the worst performance vs. Stocks or Bonds in May. This is based on 11 years of data using the GLD ETF.

Sell In May GOLD  
So what is an investor to do?   You can look at asset allocation strategies such as on Investment Foresight, or maybe take a break, enjoy the summer and stay in cash.

Of course if you look at any charts there are times the market rallies in May, and times it does not. What we have posted here are historical charts that can be used as a guide when making investment decisions. 

Sunday, April 5, 2015 EST
We added a new filter option to the option screener results grid.

Notice the Filter Icon next to each column heading. This filter will provide summary list of the items in that column that are present in the grid.


Example: After clicking the Filter Icon next to Symbol a summary list of all the symbols will be displayed. You can click on any of the symbols to filter the grid.

Thursday, April 2, 2015 EST
Weekly Options or "weeklys" are options that expire each week. Traders trade these options to take advantage of fast decay since time is running out on these contracts.  There is no free lunch trading weeklys. If the underlying price moves up or down very fast the impact will be a steep change in the option price.  This leaves little time to adjust. So if you remember there can be added risk trading weeklys you will keep a eye out for the best candidates including looking at LOW POA to limit the chance of being assigned.

Here are a few links to recent posts on the site regarding weeklys:
In our Advanced Option Screener you can either set a Friday expiration date or select Weekly Options from the Sector drop down list.

 
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