May 1, 2008

The old saying, “Sell in May, Go Away” looked a bit outdated with the way the market surged forward to open up the month. A few good reports, strength in the dollar, and a drop in oil prices gave strength to the overall market, with the major indices finishing over 1.5% with the NASDAQ closing up over 2.8%. We are seeing strength in the market that hasn’t been seen since October of last year with the DOW breaking 13,000 and the S&P over 1,400. It won’t be too long before conversation turns to the possibilities of DOW 14,000 and a S&P at 1,500. But try not to get ahead of yourself. The positives surrounding this market, is that there isn’t a blind euphoria that believes the problems are done and over with, which could allow for the markets to sneakily climb the “Wall of Worry” and continue the trend that is in place.

Let’s look at the NASDAQ and S&P charts…