Pressure in this May is still on though it may not affect a slim bull in those with trading/investing view beyond May. Among notes challenging the "Sell in May and Go Away" as pasted from this message thread said,
"Many have suggested that this year the IDX will repeat it’s bearish monthly cycle like last year, correcting 15%, but weekly MACD does not support such a scenario." Well, weekly MACD may not seemingly take a position for a dead cross, instead it is ready for a golden cross. However, do not forget what the designer of the MACD Indicator, Gerald Appel, claims that a buy signal is more reliable if the crossover occurs below the histogram and similarly for a sell signal that occurs above the histogram. The seemingly golden cross on IDX weekly MACD if that would happen is far above the histogram, meaning the signal is much less reliable. >From all key technical indicators we follow in anticipation for Sell in May in case of Indonesia, only this weekly MACD which seems to put some fight, but a closer look as we mentioned is not worth the counter strength. Having said that, we, however, technically do not believe that if correction takes place it will bring IDX down 15%. We will share our further insight on this Sell in May later the week. '+' On Fri, Apr 29, 2011 at 1:01 PM, Dewi Kamaratih <[email protected]>wrote: > > > Update from papah lauren nich, enjoy yaa :)) > > "...For those who don’t believe, Sell in May and go away crying in the > corner.. > • Many have suggested that this year the IDX will repeat it’s bearish > monthly cycle like last year, correcting 15%, but weekly MACD does not > support such a scenario. > • For those who do not believe in the May rally feel free to sell off your > holdings and go crying in the corner when IDX hits above the 4.000 mark..." > > > http://www.financeindonesia.org/showthread.php?2769-Papah-Lauren-IHSG-too-fast-too-furious > > > regards, > D > > >
