History Repeating

“Sell in May and Go Away” is so far in full swing as global volatility churns.

Words by
Frederic Ruffy

You can’t accuse Wall Street of burying its past. The old adage of “sell in May and go away” has been apropos so far in 2012. Some market watchers believe the equity market typically underperforms from May to November and for that reason, some market-timers advocate liquidating stock holdings in May before what they consider the historically volatile summer and early fall.

The pattern rings true so far this year. The S&P 500 shed 6% as it declined in 11 of the month’s first 15 trading sessions. Headlines may be doing little to convince markets otherwise: Spain partially nationalized a major bank as bond yields spiked; the Greek parliament splintered; Chinese data stirred fresh questions about its economic strength; and some U.S. earnings missed their mark.

Reasons not to invest

ARE YOU AWARE . . . . . . . . 

• One of the barriers facing individual investors is the lack of clear, basic and straight-forward dedision-making information.
• Because of the problems outlined above, only about 10% of all investors devote any significant time to personal study in order to reach their own investment decisions
• Ever though many people want more advice, they still do not want financial matters to take up a lot of their time.
• Often investors do not even know what questions to ask regarding specific investments.
• The individual investor generally thinks that almost everyone else knows more about investing than he or she does.
• Yes the individual investor seeks advice from any and all sources and avoids relying on his or her own judgement.
• Investors are found to have a very low retention of information taken from the popular financial newspapers and magazines, the major sources of investment information.  The lack of retention is attributed to irrelevancy, verbosity and complexity.
• 9 out of 10 divorces are related to money maters.

Now you know and re aware so lets make some Fast Money or maybe even Slow Money Options.

We have had am amazing run in our option trading.  Remember these three things:
               1. Always take the conservative trade
               2. Always follow your trading rules
               3. Just let the time factor work for you.
 I gave out 3 solid trades this week I only traded 2 of them, not enough money to trade all my ideas. No need to waste brain cells. A big YES we are growing our portfolios with Slow Money Option trading. Both AAPL option trades worked out beautifully generating 7% & 17%. The pull back keeps rewarding me. Looking ahead the market is very much oversold and that means it could bounce anytime, BUT.  You knew I was going to say that there are major signs point much lower saying sell, sell, sell. We don't care which way the markets are going just as long as were on the right side of the markets.


 Are you making money? If not why not trade with me. Remember the goal is to make money NOT lose money . . . Duh . . . . . . . Take a look and see how Slow Money Option Trading went https://docs.google.com/spreadsheet/ccc key=0AjgjBJLwH3rdERid3A0RE1GRFlyaHB0S0VxbHc0Vnc&authkey=COb7xdMJ 


Remember if your not a paid up member of the Fast MoneyTradingTeam you will not get the weekly Slow Money Option recommendations. Yes, I expect to publish Wednesday,Thursday or Friday my weekly option trade to the paid up members.

PEOPLE DON'T PLAN TO FAIL, THEY FAIL TO PLAN! 

remember that

Your plan your vacation.
You plan you work day.
You plan your day at home
You plan your meals.
You probably plan everything except you personal finances.
Now is the time to start planning your financial future.

Wow another good week. 4 trade alerts and we are growing our portfolios with Slow Money Option trading. Both AAPL option trades worked out beautifully generating 6% & 11% while both SPY trades generated 6 & 7% each. The pull back that I am expecting keeps rewarding me. An old wise man once said, "trade what you see not what you think" an we strive to continue to do that.  The SPY has continued to move down and the RSI confirms that it is in the beginning of a bearish move. We have yet to see any signs of a turn around and this week does not look like it is showing us any signs other than bearish continuation patterns. While the SPY is trading at the bottom of the bollinger bands and one of two things can happen now. It can bounce off and move up in a peak & valley as it moves down or it can slide down the bands in a steeper descent. The same holds true for AAPL.  Altho AAPL is within $10 of very strong support I do expect to see strong buying coming in early this week from opportunity seekers. This week  should continue to be a wild and crazy ride like a roller coaster so will continue to make some money with Slow Money Option trading.


 Are you making money? If not why not trade with me. Remember the goal is to make money NOT lose money . . . Duh . . . . . . . Take a look and see how Slow Money Option Trading went https://docs.google.com/spreadsheet/ccc key=0AjgjBJLwH3rdERid3A0RE1GRFlyaHB0S0VxbHc0Vnc&authkey=COb7xdMJ 


Remember if your not a paid up member of the Fast MoneyTradingTeam you will not get the weekly Slow Money Option recommendations. Yes, I expect to publish Wednesday,Thursday or Friday my weekly option trade to the paid up members.

THINKING HOW MUCH YOU KNOW . . . . . . . . . 
So much of life is, as Warren Buffett often describes investing, ‘simple but not easy’ and the odd character of the five regrets is that they are so obvious, yet so commonly ignored.  The five regrets were as follows:

1. I wish I’d had the courage to live a life true to myself, not the life others expected of me.
2. I wish I hadn’t worked so hard.
3. I wish I’d had the courage to express my feelings.
4. I wish I’d stayed in touch with my friends.
5. I wish I had let myself be happier.