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Where Should We Look For May Strength?

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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

 

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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