Sell In May has continued into Sell In June.
DJIA and S&P daily chart had joined the 'down-trend group' with a heavy sell-off last friday, confirming the down-trend on their daily charts. Poor market sentiment, influx of bearish views on Euro zone and more bearish charts point to more downside ahead. It seems that there isn't anything that can stop this 'perfect storm' from coming.
Valuation does appear cheap in some Singapore-listed stocks, but that itself might not be enough to be a catalyst to turn market around. Outcome of the Greek's election in Jun 17 might be the first catalyst, if any; or it could turn out the other way - triggering more selling.
I have also noticed some selling pressures in banks' preference shares since two weeks ago, and for the REITs, most, if not all, are down today. I reckon investors are not really shifting funds into more defensive sectors but rather, they are shifting money totally out of the equity markets, for fear of the return of the 2009 financial crisis.
I am very tempted to jump in and grab a few badly beaten stocks today; on few occasions I hesitated just before hitting the confirmation key. 'Let's wait for another day, no hurry' I told myself.
On the other hand, I have raised the cash level of my defensive portfolio by liquidating some holdings, as I am hoping I can buy back at lower prices.
Stay nimble and prudent, I think we have not seen wide-spread fear yet.
