We’re "long overall" and believe that the market has a lot of room to go higher, said Wayne Kaufman, chief market analyst at John Thomas Financial. (See below for his stock and sector recommendations.)
“The average move on the first year of a presidential cycle takes stocks up into July so we think that this year, it’s really following that average,” Kaufman told CNBC.
“There’s sometimes is a pause in May—but we’re looking for a further upside into July.”
“So for the 'sell in May and go away' crowd, we really think it’s more like: 'sell sometime in June or in early July,'” he said.
Sociedad Quimica y Minera De Chile (aka Chemical & Mining Co. of Chile)
Yanzhou Coal Mining
“The key issue right now is that there’s a lack of sellers,” he said. “Even though volume is a little light, if there are no sellers out there, the tail wind is to the upside and that’s what the charts are saying.”
Kaufman does not own any shares from any of the companies above, but has investment banking clients who own shares of Apple, Sociedad, Morgan Stanley, Prudential and Yanzhou Coal Mining.