The Stock Trader's Almanac

[Stock]

May Almanac (Apr 17 2009, 09:28 AM)

Once the first half of the “May-June” disaster area May is much improved the last couple of decades and ranks number one for NASDAQ in post-election years since 1973. The Dow has been up 9 of the last 11 first trading days and there is clear mid-month strength during expiration week. Though the 22nd is a bullish trading day, the Friday before Memorial Day tends to be weak and thinly traded as folks kickoff the summer season and the shortened week after has been strong over the years. Though we are concerned about a test of the lows during the Worst Six Months, seasonal factors may take a back seat to the Obama administration’s efforts to right the economy and banking system, including the effects of the stimulus package.