In the stock market we had a very spectacular month of April: the best month for the Dow since 2002, which is the main stock exchange in the US; the S&P 500, which is the stock exchange we mainly trade, had its best results since 1974; the NASDAQ, the technology one in the US, had its best month since 1987; and now, on Saturday May 2nd, Warren Buffett, “the Oracle of Omaha”, reported during an interview that he sold all his shares of American Airlines, the biggest airline in the world, adding about $10B in shares sold. This action will most likely have a strong impact on the market on Monday, May 4th, and the whole month.
The saying goes “Sell in May and go away”, although this is not always correct, it is likely that Buffett’s decisions are a preview of what will happen in the market during the month of May. What is certain is that we will have an extremely volatile market, as the world’s economies are constantly opening and closing. There are more good days coming up for traders.