Sell in May and Go Away in 2010? Poll

Thanks to all that voted on the Stocks - Sell in May and Go Away in 2010? Poll.

A total of 230 readers voted
41% voted Yes
34% voted No
24% voted Don’t Know

For those that voted Don’t Know Ask Eric, here’s my response despite minority voting.

While stocks have hit an air pocket in the trend and experts once again tout their 1,000 Dow and 1,000 Gold arguments, they ignore the obvious safe haven capital flow trends. The equity market’s direction will be determined by capital flows. The flight for safety into movable assets (stocks, gold, and other tangibles) continues as devaluation and lack confidence in fiat intensifies within the context of the evolving International Sovereign debt crisis.

Should one sell into May and Go Away in 2010?

Kennedy Gammage once wrote that “Those of us who make a living looking into a crystal ball will end up learning how to eat lots of broken glass.”

There’s a major cycle date high for stocks in August 2010. When time is up, price will reverse. I would not be surprised to see stocks higher in August than April or May. This, however, does not suggest that one should not sell in May and go away. Go away into U.S. Treasury bill? No. Go away into Gold? Yes.

It appears that the fourth consolidation pattern since 1999 has broken to the downside. It's only a matter of time before the 2009 lows are broken.

U.S. Large Cap Stocks Capital Appreciation Index (LCSCAI); S&P 500 to Gold Ratio: