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Is Sell In May A Superstition For Suckers?

Monday, 3 May 2010 | 5:42 PM ET

You’ve heard the old adage "sell in May and go away."

According to the Financial Times, the theory worked from 1980 through 2000, with the markets producing positive returns only 50% of the time in the May through October period.

But the theory has failed the last 9-years, with investors actually seeing more positive returns in the May through October period than in the November through April period.

Tomorrow's Headlines
A look at the market moving headlines for tomorrow, with David Riedel, Riedel Research Group.

Okay – maybe you shouldn’t "sell in May and go away," entirely but how about taking profits in at least some stocks?

There may be no time like the present for that. Here’s what the Fast Money traders suggest:

Pete Najarian: I’d considering taking profits in the rails. The area has heated up, performed well, and now it’s time to lighten up.

Joe Terranova: I’m a seller of regional banks.

What do you think? We want to know!




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Trader disclosure: On May 3, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (GS) Call Spreads; Najarian Owns (RIMM) Call Spreads; Najarian Owns (TEX) Call Spreads; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (JPM), Is Short (JPM) Calls; Najarian Owns (BAC), Is Short (BAC) Calls; Najarian Owns (C), Is Short (C) Calls; Najarian Owns (WFC), Is Short (WFC) Calls; Najarian Owns (AAPL), Is Short (AAPL) Calls; Najarian Owns (MMR) Call Spreads; Najarian Owns (AMZN) Call Spread; Najarian Owns (AKAM) Call Spread; Najarian Owns (CAT); Najarian Owns (C) Calls; Najarian Owns (CLF) Call Spread; Najarian Owns (F) Calls; Najarian Owns (MMR) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (NSC) Calls; Najarian Owns (NRG) Calls; Najarian Owns (PFE); Najarian Owns (SOA) Call Spread; Najarian Owns (TEX) Call Spread; Najarian Owns (YHOO) Call Spread; Seymour Owns (F), (BAC), (MPEL), (DRYS);(AAPL), (MSFT); Karabell Owns (GS), (C), (AAPL), (VALE), (RIMM); Grasso Owns (NDAQ), (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (NEM), (PRST), (PFE), (BA), (T), (CSCO), (X)Kelly Owns (FXE) Puts; Kelly Owns (FXB) Puts; Finerman's Firm Is Short (IYR), (MDY), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Fim Owns (BAC), (BAC) Calls; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finemran's Firm And Finerman Own (JPM); Finerman's Firm Owns (MCD); Finerman's Firm And Finerman Own (RIG), (RIG) Calls; Finerman's Firm Is Short (USO); Finerman Owns (WFC) Preferred; Finerman's Firm Owns (PLCM); Terranova Owns (SWN), (XCO), (HES), (AXP), (TER); Terranova Is Short (CMA); Terranova Owns (PFE) May Calls; Terranova Owns (C) May Calls; Terranova Is Long June Gold 2010 Futures; Cortes Is Long U.S. Dollar; Cortes Is Short Crude Oil; Cortes Is Short (IWM) On Spread vs. Long (SPY)

GE Is The Parent Company Of CNBC

For Tim Seymour
Seygem Asset Management Is Short (CLF)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owned (PBR) On 4/1/10
Seygem Asset Management Is Short (PBR)
Seygem Asset Management Owns (POT)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Is Short (X)
Seygem Asset Management Is Short (FCX)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Steve Grasso
Stuart Frankel And Its Partners Own (AMR)
Stuart Frankel And Its Partners Own (BAX)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PALM)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)

For Brian Kelly
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (AUY)
Kanundrum Capital Owns (GFI)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short (AA)
Kanundrum Capital Is Short (ACH)
Kanundrum Capital Is Short (FXI)
Kanundrum Capital Is Short (USO)
Kanundrum Capital Is Short (HES)
Kanundrum Capital Is Short (XOM)
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Swiss Franc
Kanundrum Capital Is Short British Pound

For Anthony Scaramucci
Scaramucci Owns (GS), Skybridge Owns (GS)
Scaramucci Owned (PFE), Skybridge Owned (PFE) On 4/29/10

For Hamzah Mazari
(CLH) Is Or In Past 12 Months Was A Client Of Credit Suisse
Credit Suisse Provided Investment Banking Services To (CLH) In Past 12 Months
Credit Suisse Has Managed Or Co-Managed A Public Offering For (CLH) In Past 12 Months
Credit Suisse Has Received Investment Banking Compensation From (CLH) In Past 12 Months
Credit Suisse Expects To Receive/Seek Investment Banking Compensation From (CLH) In Next 3 Months
Credit Suisse Is A Market Maker Or Liquidity Provider In (CLH)


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  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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