THE GREEN MAY

Investors finally ignored the old mantra „sell in May and go away”. U.S. stock market finished the month with the biggest monthly gain since February, as all the main benchmarks ended the week higher. This May was a great month for the US and European stock markets. U.S. indices made their biggest monthly gains since this February, SP500 gained more than 2% and closed and absolute historical high at 1.923. The gain is even more impressive if we know came to gain after two months losing streak and gained only in May more than 3.1%. Both the Nasdaq and DJIA turned positive for the year of 2014. Nasdaq firstly gained in three months.

May results:

• SP500 + 3,1%
• DJIA +0,8%
• Nasdaq +2.1%

European markets are in seven weeks gaining streak and the sentiment is so bullish in the south countries too, like Italy or Spain. All benchmarks are performing well and made YTD significant gains.

May results:

• Stoxx 600 +1.9%
• DAX +3.5% at a record closing high
• FTSE’s best level since late December 1999

Where are the tops of S&P500? I don’t have a faintest idea, what I only know is that this is a brutal bullish market. Don’t argue with this fact and fight with the market. SP500 is up about 50% in two years. Doesn’t seem any resistance level because the index is in historical high territory so might be the next stop only in the second part of 2014 the magical 2.000. Let’s see.

The BFM Assets Team.