Sell in May and Go Away

The above is a chart issued by Stockcharts.com and shows the cyclical nature of the S&P 500 index.   You can clearly see that there is a bullish bias from November to April and a bearish bias from May to October.

Whilst the market is undeniably bullish at the present time, most indicators are showing bearish divergence so I'm betting that the bulls' days are numbered.   The market has had a parabolic rise and whilst I expect any retrace to be short lived, I also expect it to be steep.......

Personally, I am more comfortable being short than long so I am taking a good few short term, short positions on the US market by buying Put Options with the May 18th. expiry date.

I have taken 13 positions in all and all are within my money management criteria.

The positions are all as a result of established patterns and are in the following companies:-
ORLY, FFIV, PCP, PXD, SPG, BSFT, PII, VFC, CMI, IBM, NTAP, GS,GWW

My strategy with option plays is to risk the total amount that I am prepared to lose and take profits at 100% return on risk.   In this instance if 50% of my trade are winners and 50% losers, I will break even.   However, If my win/loss ratio is greater than 50% I shall make a profit.   Of course, If my win/loss ratio is less than 50%, I shall make a loss.

That's trading!