Sell in May and Go Away? (Bursa/KLCI Edition)
As the saying goes, “Sell in May and Go Away”. This comes up yearly, as May has traditionally been a weak month for stocks. If you invest or trade in Bursa, do you know the past performance of Bursa in May?
Well, in summary, in the past 10 years (2014-2023), we have seen 7 years where May have been a DOWN month.
I don’t have a crystal ball, but the odds are stacked against a bullish month, as KLCI nears 1600 level, which will be a resistance level. So what are your options? Well i put forth 4 possible options:
1. If you are a Long term trader, this could be your opportunity to add
2. For Short term trader, be selective and stick to stop loss
3. For Contra trader /day trader - be more selective
4. Or you could just hold your existing positions and hedge by Selling the Index - KLCI FuturesWishing all the best and have a good trading month ahead.
What do you think, will May be bullish or bearish, and what would you do? I would love to hear your thoughts as well.
To see the details of the past 10 years May performance, do watch this short 5 minute video i did on this topic. Thanks and have a good trading month ahead. Cheers.
Not sure which companies makes up the KLCI index, here are the 30 companies as below:
$AMBANK(1015.MY$ $AXIATA(6888.MY$ $CDB(6947.MY$ $CIMB(1023.MY$ $GENTING(3182.MY$ $GENM(4715.MY$ $HLBANK(5819.MY$ $HLFG(1082.MY$ $IHH(5225.MY$ $IOICORP(1961.MY$ $KLK(2445.MY$ $MAYBANK(1155.MY$ $MAXIS(6012.MY$ $MISC(3816.MY$ $MRDIY(5296.MY$ $NESTLE(4707.MY$ $PCHEM(5183.MY$ $PETDAG(5681.MY$ $PETGAS(6033.MY$ $PPB(4065.MY$ $PMETAL(8869.MY$ $PBBANK(1295.MY$ $QL(7084.MY$ $RHBBANK(1066.MY$ $SIME(4197.MY$ $SIMEPLT(5285.MY$ $TM(4863.MY$ $TENAGA(5347.MY$ $YTL(4677.MY$ $YTLPOWR(6742.MY$
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Loves technical analysis and sharing my trade ideas and stock trading journey via my YouTube Channel @Ryugentrades
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RyugentradesOP : Bulls still in control although index back to 1600 after hitting a high of 1617
$FTSE Bursa Malaysia KLCI MAY4 (FKLI2405.MY)$ hitting support at 1600. Bears fighting and bulls still strong. Who will win the battle? History on bears side, let’s see what happens. It could be an equal contest and we end up at 1580 by month end. Bears and Bull will tire each other.