Buy In May & Never Go Away?

We finished the month of May in a relatively lackluster fashion, but the gains this month were remarkable. For the month, the Dow gained +4.3%, S&P 500 +3.3% and Nasdaq +3.1%.

Based on what I've been hearing, holding new highs on the S&P 500 is considered by many to be an important tell. Now that new all-time highs have been reached there, investors want to make sure that the upside momentum continues without much of a delay and holding new highs in the short-term acts as sufficient confirmation as short-term overbought conditions are worked off.

Beyond the short-term, my view is that the market will continue to climb the wall of worry as long as this trend channel holds and the same conditions we've been in continue (M&A mania, liquidity, bearish sentiment, etc.) The real danger comes when that trend channel is tested and fails which I think will happen. Unfortunately, much like everyone else, I'm not smart enough to know when or at what level that will come.