Sell in May and go away?

The sell in May is a self fulfilling prophesy which happens almost every year. For the past 4 years, this prophesy has happened without fail.

In 2009, DJIA fell from 8675 to 8146 in June.
In 2010, DJIA fell from 11167 to 9974 in May.
In 2011, DJIA fell from 12850 to 11852 in May
In 2012, DJIA fell from 13228 to 12118 in May.

Except for 2009, DJIA all dropped in May. How about this year? Will the same thing happen again? I think it will happen again. If you study the chart of DJIA currently, you'll notice that its at the 5th wave of the elliot wave which is the last. From technical analysis point of view, it has reached the target of 161.8% on the Fibonacci. Traders will start taking profit at the 161.8% point.

From fundamental analysis point of view, the macroeconomic conditions worldwide and in US is still sluggish. Europe is still in trouble, US is still having high unemployment and slow growth. All these factors will contribute to the volatility in the stock market. I reckon that the probability of a sell in may and go away prophesy will happen again this year.

What does that mean for us? Its an opportunity to make money. You can either short the market or buy stocks after the may correction. It depends on individual and their style of trading.

Happy trading to everyone.