[Chart courtesy of MarketWatch.com]
1. Moving the Markets
Today marks the first trading day of May, and ushers in what has historically been the worst six-month stretch for stocks. And while there’s no denying that history shows the May-through-September period delivers far lower stock returns than the more bullish October-through-April time frame, implementing this rather extreme market-timing approach to investing might be a bit of overkill. After all, we prefer letting our Trend Tracking Indexes (TTIs) and trailing sell stops be our guide to market exposure.
The S&P 500 remains above 2,000 and the DOW keeps flirting with 18,000. U.S. Crude also has maintained a steady climb to $45.00 a barrel but got pulled off its lofty levels today.
To kick off the month in economic news, a gauge of U.S. factory activity fell in April as U.S. macro data continue to slump and China data weakens.
In earnings news, Cisco (CSCO) reported better-than-expected Q3 results as volume rose and the firm’s cost-cutting measures took hold.
With earnings season pretty much over, investors are keeping their eyes on the upcoming summer months to see how currency issues and oil prices (which are on the rise) will impact markets.