5/17/2021
By Charles Payne CEO & Principal Analyst

It was a tough week, but one filled with the kind of test that gives the rally greater credibility and should give investors greater confidence.

Here's the rub; the week also reminded us of the fragility of the world we live in and why the fight – any fight – is never really over. The good news is the fight against Covid19, and a ham-fisted bureaucracy that made things worse than they had to be, got better with the CDC announced that vaccinated people do not have to wear masks outdoors or indoors.

That news was a shot in the arm for the stock market (no pun intended) and the biggest relief for those bogged down in the fog of confusion, sadness, isolation, and unshakeable fear. Sadly, many will continue to be shadowed by these feelings. One poll pointed out vaccinated people are more fearful of doing a variety of things in public than unvaccinated people.

The other big news of the week was the Colonial Pipeline shakedown that saw one of the nation's largest pipelines shut down by cybercriminals who demanded and received a $5 million ransom. The episode underscores vast vulnerability in the private industry and significant public utilities to such crimes while reminding us it might be a tad early to get off fossil fuels.

Then there were the ups and downs, or should I say the downs and ups in the stock market.
Headlines and commentators simply report it as a down week. Still, it was a monumental up week, in my opinion, when measuring resolve, which has been the key characteristic of the stock market rally since March 2009.

Inflection Point?

In real life we cannot buy every dip large or small and the focus shouldn’t be on guessing the absolute bottom but catching the turning point early on.

Its worth wondering if maybe the market made a major inflection last week, fighting back from serious downside pressure to rally convincingly into the weekend?  I’m not sure but it sure feels like it.

To read the full report, contact your account representative or email Research@wstreet.com

Charles Payne
Wall Street Strategies

Add a Comment!