On Thursday, the Fast Money pros were trying to determine the best trading strategy for June after May went down as the worst month of 2012.The S&P 500 index fell 6.3 percent in May, its largest percentage drop since September.
And the other indexes were worse. The Dow's 6.2 percent drop and Nasdaq's 7.2 percent loss are their largest monthly declines in two years.
Going forward, how should you position? Will the markets get worse or will they bounce?
Strategy Session with the Fast Money traders“I'd sell every rip until the market proves itself,” counsels Keith McCullough. The market has been bouncing around in a range and until a significant development gives either bulls or bears a foothold, McCullough expects that to continue.Trader Mike Murphy concurs. “In this market look for what’s working – get in and get out. Buy dips and sell rips.”
That strategy, however, involves moving in and out of positions with somewhat aplomb. If you're a long term investor, you might want to wait before you establish any new positions. Largely, the traders think the path of least resistance is lower.
"I haven't been this negative on the market in a long time," says trader Josh Brown. "In the first week of May I went 100% risk-off."Page 1 of 4 | Next Page