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: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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