Sell in May go away?

Market was range trading for the past one week. For Hang Seng Index, it manage to hold above 21000. The trading range for Hang Seng Index futures last week was traded between 21021-21664 (643). No matter how market falls, HSI is trading above daily MA10-21260, a sign of market is moving on a buying signal. The futures settled at 21291, lost 190 points at today's closing. For cash market, finished at 21304.44 (-162.60).

This week is the final week of the month. The futures market will start the contracts rollover activities and the long weekend is coming. How will the market moves? Will we see a higher high next week next month? Bear in mind, next month is May. The market is always spooked by the saying of "Sell in May and go away". Plus, Hong Kong market had been up since Chinese New Year, does it mean another correction coming?

Anyway, we sold Emperor Capital (HK:717) after a 10 percent profit within a month. We will look at it again if Sell in May comes. If not, we still have other stocks in hand for dividend collection in the second half of the year.

If 21500 had become resistance, 21000 is an important support for HSI. Further supports are seen at 20800, next 20450. On the upside, if market broke above recent high 21664, market will moves towards 21800, next target 22000. 

In Malaysia, FBM KLCI was ranging between 1700-1725 for the past one month. At today's closing, cash market closed at 1714.51, lost 3.45 points. The spot futures finished at 1713 (-6.50). KLCI Index need a breakthrough. The market need to break above 1730 to see a new trend. If not, breaking below 1700 will see supports at 1675, next 1650.