What else to say, what happens at today's closing either in green or red, would not twist the worsening environment of "Sell in May and Go Away". Stocks are more than likely to face a bumpy ride toward the end of May.
The buyers right now have no reason to step up and be aggressively purchasing here. We have been discounting and are out of the earnings season and there is no catalyst. We think certainly that in the case of US if the decline in equity prices combined with the decline in commodity prices and the decline in 10-year yields, you can not ignore them because they could be signaling an economic slowdown to occur six months form now. We are now in 55 minutes to closing. A series of long line of margin calls will be made in this week and next. They are basically ready to perform Elvis' dance, "It's now or never" in the last 45 minutes of trading. USD index intraday has already signaled double bottoms meaning they are regaining their strength back to move even higher. Euro debt doubts are still lingering, and now to make it even much worse Standard & Poor admits and warns that China bad loan surge is coming. Overseas funds sold $129 million more local stocks than they bought in the first two days of the week, exchange data show. And, last but not least, Indonesia’s 10-year government bonds fell for a second day yesterday. The yield on the 8.25 percent note due July 2021 rose one basis point, or 0.01 percentage point, to 7.47 percent, according to closing prices from the Inter-Dealer Market Association. '+'
