The S&P/ASX 200 has bounced 5.16% from early April lows to be around 50 points above the psychologically important level of 6000. The question clearly becomes; is this bounce sustainable, or will the Australian share market fade from here? Is it time to “sell in May and go away”?
From what I understand “sell in May and go away” is a northern hemisphere derived saying to describe the cyclical slowdown that occurs over the northern summer months. As the weather warms up and the days get longer, traders cut their positions and go on holiday. This is particularly relevant to commodity traders. (You can read Peter’s view on “sell in May” here.)
The local perspective