Where Should We Look For May Strength?


Based on April performance alone over the past 20 years, the best industry groups to invest in have been the following:

$DJUSHL (Hotels & Lodging REITs) +12.4%
$DJUSAU (Automobiles) +10.3%
$DJUSRL (Retail REITs) +9.7%
$DJUSES (Real Estate Services) +8.9%
$DJUSTR (Tires) +7.9%

All five of these industry groups remain technically sound in the short-term and are poised to do well in the second half of April if the overall market continues to perform well.

So looking ahead, what performs well during the month of May?  Well, here's the seasonality chart for the best performing industry group for month of May:

Outside of October, tobacco stocks enjoy their best month during May.  Here's the current technical look at the DJUSTB:

To review the other industry groups that perform exceptionally well, you can view my Friday webinar HERE.  I spent much of the hour reviewing seasonal patterns that I believe you'll find useful.  The last twenty minutes or so was answering individual stock questions.

Happy trading!



Tom Bowley
About the author: is the Chief Market Strategist of, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to members every day that the stock market is open. Tom has contributed technical expertise here at since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More
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