Wall Street Strategies
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Afternoon Note

Message about the market

By Charles Payne, CEO & Principal Analyst
2/2/2018 2:37 PM
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The market is enduring its worst week in two years, it is unnerving a lot of investors, and I want to caution everyone to make sure to stick to the plan- investing on fundamentals-.  On that note, I have been taking profits at a faster pace over the last couple of weeks and everyone should have cash because these are the kind of pullbacks that create opportunities that allow investors to beat the market.

Economic data is surging by the minute and while that might cause the Fed to be more aggressive with prospective rate hikes, they would be warranted with the kind of growth bubbling to the surface. 

From here, it’s all emotional - selling that will trigger selling.  In such cases, I employee charts to help determine where buyers may step up and outnumber those dumping stock.  The key support points for major indices:

Dow Jones industrial Average

S&P 500

NASDAQ

I’m on the lookout for great stocks to buy once the dust settles.  While, it never feels great when the market swoons, I like it better than a long drawn out of water torture like pullback.  Major indices will find support and shake out weaker hands.  

Make sure you have cash and make sure you are ready to pull the trigger when the time comes.  Lots of people think they are going to buy the next dip but they actually sell great stocks at a loss and head for the hills only to reemerge after a big rebound.

I never try to pick the bottom, but we are keying off the underlying data that ultimately will determine where this market goes unless the Fed really blows it. Jay Powell has been around long enough not to upset this apple cart. 

Remember our economy is just now beginning to rally and wages are only just now moving higher, it would be a crime to derail this at the first hint of rise in inflation.  Three to four rate hikes should keep the Fed ahead of the curve. 


Comments
Thank you Charles for your positive attitude and comments on TV and via this email. You rock!

Jackie on 2/2/2018 2:42:36 PM
Love your thoughts Charles.

Ginny on 2/2/2018 3:27:11 PM
Thanks for your reassurance

Terri on 2/3/2018 1:24:13 PM
with that ---staying pat---Thanks,Charles and Crew

John Cowger on 2/4/2018 12:09:34 PM
 

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