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Fast Money

No.1 - Sell In May?

“Sell in May and go away.” That’s an old Wall Street adage but it might not be all bunk?

Since 1970, the average performance of the S&P 500 falls off a cliff after May, with September actually notching negative returns on average. 

However, we should note that this strategy did not quite work last year - the market rebounded in June to notch a 2% gain for the period.

The Top Three #1

Eric Bolling says in his world it’s buy in May. He adds over the last 4 years investors who bought the Energy Select Sector SPDR (SLE) in May enjoyed an average return of 22.5% provided they held it until the end of the year. The Utilities SPDR (XLU) had a 16.5% return over the same period.

Dylan Ratigan explains that the best performers over the Summer, according to Ned David Research, are Consumer Staples Select Sect. (XLP), Energy Select Sector SPDR (XLE) and Health Care SPDR (XLV).

He adds the worst performers during the same period, according to Ned David Research, are Materials SPDR (XLB), Technology SPDR (XLK) and Consumer Discretionary SPDR (XLY).

Tim Strazzini tells investors that each year is different and distinct. Historical results are guidelines, but nothing more, he says.

Guy Adami says Goodyear (GT) is up 250% since last Summer and if investors can take a profit – they should do it.  That, he says, doesn’t matter on the calendar.

Questions? Comments?

Trader disclosure:
On APR 27, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Strazzini Owns (IBM), (JBLU), (MPEL), (PG), (T), (WMT) Bolling Owns (MPEL), (BP), (XOM) Gold, Silver, Corn Bolling Is Short Soybeans; GE Is The Parent Company Of CNBC