I do not think it is unwise to sell now in May 2013. Of course you will have to time your 'Sell' differently for different stock futures. As for record breaking streak of Dow Jones, it seems the bullish exuberance has already been overdone for the time being. I am not for once saying that Dow Jones has peaked. I am only saying that Dow has overstayed in the untrodden territory of All Time High for a bit too long. So for the present moment Dow will have to cool down somewhat in rest of May.
I have been reminding you in previous posts that we will be selling May series. And the time has come for some action tomorrow. The first 'Sell' candidate is Nifty itself. Lets have a look at Nifty May Futures daily chart.:
We can see that Nifty has the following weakness in daily charts:-
- V-shape recovery which needs to correct so as to provide stability for further move up.
- There is formation of Bearish Engulfing candlestick pattern, if we see the candles of the last two trading sessions.
- Support for this V-shape up-move will be at 61.8% or 50% retracement. This means that 5800 and 5725 are the support areas for Nifty.
There are other 'Sell' candidates also, but we can keep our exposure at low risk by selling only Nifty for the time being. But in case anyone needs to reconfirm a view on selling any other stock futures, he or she can do so by simply asking my opinion in the 'Comments' section. Remember its May and we can make merry by selling stock futures in May. So go right ahead and take action. All the very best!