STA Blog

Foreigners often believe that Brits’ are totally into tradition. As a subject of His Majesty King Charles III, I can say that this may or may not be the case, and in any event, don’t be fooled; all too many of us say one thing and do another.

The old lore of the title to this piece did actually originate in the UK, the idea being that stock market investments should be closed out in May, left alone over the summer months, and then re-invested in September at the start of the new academic, legal and political calendar. Many have spent all too many hours trying to prove, disprove, or justify this tactic.

More prosaically, May is the start to the social season in London, kicking off with the Chelsea Flower Show, this Monday the 22nd. Events then pile in thick and fast, an upmarket evening garden party on the 28th at St. James’ Square, linked to the Crown Estate. The Royal Academy Summer Exhibition on Piccadilly, horse racing at Epsom and Ascot, open air opera and concerts, and tennis at Wimbledon – plus hundreds of private parties. After all this excitement, the poor old investor obviously needs his (and her) break, preferably somewhere near the sea. So you see, no time to talk business and investments.

What can a technical analysts do now? I would suggest a sudden burst comparing the charts of various indices, looking for signs of what might be coming next. Areas where one can see a confluence of potential signals, where indices confirm each other. To this end I attach two daily charts that go back over the last year: the Dow Jones Transportation and Utilities indices so that you can compare these lesser brethren with other more readily available US stock market composites. Perhaps they might help.

Utilities

Transports