Sell in May and go away, seems to be the chant from most brokers at this time of the year.
Historically, seasonal patterns seem to emerge in the markets – although, this isn’t written in stone.
A chart from ABN AMRO Morgans, shows the ASX seasonal cycles are:
March correction, April peak, then a steady decline to reach an October low followed by a December rally.
Well, not having been immersed in the markets for that long it’s definitely a good starting point. The March correction came early this year, on 27 Feb with the chinese jitters.
As a CFD trader, I guess it means in the current cycle there should be more opportunities to take short trades.
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