Guard Up for Mighty May

The month of May in the stock market is one of the more notorious months of the year. However, that reputation may be a bit undeserved, as June typically can be a rougher month if you look at seasonal statistics. Then again, seasonal trading in general is inherently flawed and should almost never be relied upon exclusively. Instead, we want to see if a given seasonal thesis aligns with a sound technical one, too. 

Nonetheless, it is only natural to have your guard up a bit as a trader in the month of May, with the various cries to "sell in May and go away" coming from most corners of Wall Street. And when you consider that May is now upon us in the shadow of yet another rally to new highs (or close to them), then it is likely on the minds of traders even more. 

And that brings us to this morning's action, where most indices are still consolidation the consecutive gaps higher we saw early last week. Even with small caps lagging a bit, I suspect bears are not pleased with this action, since the gist of it is benign consolidation and a general lack of volatility. 

Indeed, the longer the broad market can simply digest recent gains without too much in the way of heavy selling, the better charts like WYNN can firm up and set the stage for new legs higher. Moreover, select momentum plays like the appropriately-named China internet play, MOMO, are attempting to breakout right here, right now.