"Sell in May and go away" - but where to? I think I know where and would like to run it by you, as, I am sure, would other subscribers. India is the place. "Buy India at the end of May, sell again on Christmas Day (or thereabouts)."

"Using your 5 and 10 year charts over the last 8 years I have found that buying at the end of May or June 1st. and selling at year end yielded the following results:

"2003 82% gain
2004 41% gain
2005 40% gain
2006 35% gain
2007 39% gain
2008 27% loss
2009 19% gain
2010 21% gain

"The average annual gain excluding the disastrous 2008 has been 40%. If 2008 is included it is 31%. The global crash of 2008 affected this time slot in India much less than most of the world. The exact dates seem to be of importance.

"What do you think? Wonderful service. Look forward to meeting you again at the November TCS."

Eoin Treacy's view Thank you for sharing this insightful analysis. India has been a spectacular performer over the last decade and you are correct to point out it does best in the second half of the year. Your email is well timed since the Sensex is currently at an interesting juncture.

The Sensex rebounded impressively in 2009 but has lost momentum over the last 18 months. It encountered resistance near the 2008 peak in November and has now formed the largest pullback since late 2008. The Index has posted a progression of lower rally highs for the last six months, with the most recent just below 20,000. It has now fallen back below the 200-day MA and is testing the February low. A clear upward dynamic held for more than a day or two, is now required to suggest the return of demand in this area. The Index will have to sustain a move back above 20,000 to indicate a return to medium-term demand dominance.

If one were to adopt an unrepentant bullish argument, the whole reaction since November could be rationalised as a somewhat longer pause following a retest of an important peak. However, if that is the case the Index will need to find support before long.