Historically, the month of May leads to huge moves in the markets. April, as predicted turned out to be a range bound flat month. let us see how May has affected the stock markets.
1. In all election results month of May has lead to huge moves, May 2004 - minus 17.4 pc, May 2006 - minus 13.7 pc, May 2009 plus 28.4 pc.
2. The preceding April 2004 was 1.4 pc, April 2006 was 4.6 pc and April 2009 was 15 pc gain. April 2014 was flat with 0 pc gain.
3. The average high low pct for May is 7 pc above and below April close which gives a range of 6227 - 7124 range for the markets. If we correct before the Results, chances are we may see a rally after the elections.
4. The May low has always been at least 1 pc below April close. So, we should re visit 6600-6650 once before any up move.
5. The present correction is an opportunity to add more stocks as long as the markets remain above 6350. The may high has always been 3-4 pc above the April close usually and hence we should be making 1 more new high in the month of May.
1. In all election results month of May has lead to huge moves, May 2004 - minus 17.4 pc, May 2006 - minus 13.7 pc, May 2009 plus 28.4 pc.
2. The preceding April 2004 was 1.4 pc, April 2006 was 4.6 pc and April 2009 was 15 pc gain. April 2014 was flat with 0 pc gain.
3. The average high low pct for May is 7 pc above and below April close which gives a range of 6227 - 7124 range for the markets. If we correct before the Results, chances are we may see a rally after the elections.
4. The May low has always been at least 1 pc below April close. So, we should re visit 6600-6650 once before any up move.
5. The present correction is an opportunity to add more stocks as long as the markets remain above 6350. The may high has always been 3-4 pc above the April close usually and hence we should be making 1 more new high in the month of May.
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