Yes. FOMC meetings. This meeting of the FED is about nothing in paticular. The meeting in itself is not what is to look at but where the personnel will be and what they will say as to their prior speeches this week. You do not take a crack addict and have them go cold turkey, you ween them off with methadone.
This market has been QE'd to death. Yes the market is making new highs and massive amounts of money has been coming in, but the support is weak.
The fulcrum here is QE. It allows companies to use free money to make money. Take that away and the support on equities weakens. This is why the Fed is coming out with their options. This is to tell companies that QE is to end and to start making plans for interest rates to rise.
Those who got in on the start of the market run will be looking to take some profit off the table. Resistance is starting to make headwind. Last month the amount of money flowing into the market slowed for the first time.
Some will say that the Gold and Silver pullback shows that equities are getting stronger. If this was the 1990's I would agree with you.
High speed trading algorithms has thrown that marker out the window. Twitter in itself can cause a stock to rise or fall in a matter of minutes. We are living in a new age of trading where news, social media, and trading algorthms is the new norm. Peeps with 6 or seven trading screens in their homes taking in massive amounts of information. Myself spends seven hours a day reading the news trying to decipher what is what and getting it right about 45% of the time.
I do not personally believe in "sell in may" because it pertains to those who actually buy stock. As an options player "The sell in May" play can cause major volatility allowing for 500-10000 percent profit.
Risking it all to obtain the reward, necessitates the motivation to succeed.
