Sell In May?

And go away, that is what they say with stocks. Will it hold true this year? We will soon find out, it really doesn't matter, it is all fake anyway. The lackluster GDP from Friday, the lousy job report from last month, the putrid consumer confidence number from this morning- who cares the Big Boys are getting wealthier by the boatloads with the rigged markets of late. We just finished April with the S&P 500 a touch below 1600 and with the Dow Jones breaking all records. Here is one of them-Dow Jones has NEVER made it into this late in the year without having recorded three down days in a row! Amazing, it certainly is mindboggling to me.

Ponder this, please take a look at the price action of the US 30 Year Chart

This is a weekly chart, the FED could not have it any other way. Unstoppable stock markets, record low rates, tame Gold prices and on top of all that take a look at the falling dollar. Look here

Does that look like a strong dollar, that you here them tout on financial TV? I thought the dollar was forming a top as I have pointed out previously. Looks like if cannot hold the lows today, we are headed towards 80 on the dollar index.

3 events for the rest of the week, two of them that really count. The Fed is tomorrow, they are now and have been a non-event for quite some time now, Thursday morning we have the ECB and Friday the US job report. I was expecting a stronger Euro to come from the ECB meeting, the Euro is now up to resistance near 13180, it has moved quite a bit over the past couple of days.Today could have seen some moves coming from the last day of the month and  book squaring, so do not get caught up in too much of the price action. Tomorrow can be complete opposite of we saw today, USE CAUTION!

Last, my view on Gold at the moment. I am sorry that I am not sounding all that excited about the price action. I am watching 1440 to the downside and 1520 to the upside. If we trade down, which we just may, I would like to see if Gold can hold 1440, that would be a great sign and a great level to trade off. If we shoot up from here, which I would love to see, I would like to watch what happens above 1500 and if we can hold that handle. I started out this month by writing how I felt GOLD was the market to "HIT IT OUT OF THE PARK", I truly believed it was Gold's time to shine and rise above all the asset classes- I have never been so wrong with a market in my trading career. Gold has made me look like a fool, for now!

I watched Gold consolidate for almost 2 years between 1500 and 1800, who is to say that Gold cannot trade between 1200 and 1500 for the next 2 years. No matter what happens, I know why Gold fell and I know that it will trade at MUCH, MUCH higher prices in the future due to the massive debt floating around the world.

Good Night
Martin