Wall Street Strategies
  remember me
Sign Up | Lost Password
Ignore Sell The Inauguration

By Charles Payne, CEO & Principal Analyst

For the individual investor, bullishness peaked just two weeks after the election at 49.9%. And since then, it’s drifted until the past week when it actually plunged almost 7%. The market covered a lot of ground in a short period of time, but there was never a sense of irrational exuberance. In fact, one would have to go back 107 weeks to find the last time bullishness was above 50%- just three weeks shy of the all-time record.

This sense of cautiousness underscores why so many investors missed out on the stock market rally that began in March 2009. It also suggests a more disciplined individual investor. Still, investors are beginning to warm up as bullishness has been north of 40% for nine consecutive weeks.  

My concern is that individual investors have a habit of blinking just at the moment they begin to feel too confident. A case in point: back in January 2013, the Dow Jones Industrial average was charging toward a new all-time high, and bullishness stood at 52%.  The index smashed through its resistance and began a two-year non-stop rally, but it had plunged to just 28% at the end of March’s bullishness.

This same script has played out over and over throughout history.

There may be a psychological aspect to all of this such as Lucy pulling the ball back as Charlie Brown gets ready to kick.  No one wants to feel like a chump.  By the same token, there is also a sense of manipulation involved in this as well, and there is no doubt that big Wall Street money likes to ride these waves long before encouraging the masses.   

I know it is tough ignoring the Street telling you to sell the inauguration, ignoring the angst that comes with market rallies because it’s time to build a portfolio. 

Charles Payne
Wall Street Strategies

Sad, but true. System & strategy necessary to succeed. Fear & risk management don't go together well. Well written, Charles! Onward & upward with confidence.

Robert Waddell on 1/20/2017 8:25:45 AM

Add a Comment!

Submitted comments are subject to moderation before posting.
Charles Payne is featured on the Fox Business Network Monday-Friday at 6 PM ET on "Making Money with Charles Payne".

Charles Payne

FREE commentary in your Inbox! Click here
No credit card is needed.

The WStreet Market Commentary delivers the daily unbiased insight and guidance of Charles Payne and the Wall Street Strategies Research Desk.

The daily commentary takes a common sense look at the big picture, gives you advice on sector rotation and trends and helps you determine how news may affect your portfolio. We forecast what the future drivers of the market will be by interpreting the fundamental, technical, and behavioral aspects of the market.

From time to time, the commentary includes free stock picks and trading strategies to help you make money and maintain financial and mental balance in the stock market. The commentary is delivered twice a day, in the morning and afternoon, keeping you informed at pivotal times and frequently includes analysis of the major indices and actionable analysis of individual issues.

Take control of your future starting today. Simply click here to create your account.

Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Updated Privacy Policy | Terms of Use |
All Rights Reserved.