has traded higher by an average of 4.6% during the sell in May period, with 10 of the 12 years posting positive returns," he added. "Typically, investors are off Wall Street during summer and return in the fall when seasonal returns are more constructive."This May, Turnquist said traders should be on the lookout for a modest overweight equities allocation and stick to larger cap quality names with strong balance sheets and solid free cash flows.
And from a macro perspective, "this year is especially unique as the market faces elevated levels of uncertainty, despite the market shrugging off most of the negative headlines" said Turnquist. "Maybe the pattern should be sell in June," he added. The Federal Reserve hiked interest rates for the 10th time on Wednesday, while also signaling a pause in the cycle could be in the cards. Additionally, the week was wrought with more banking problems.