11/24/2025
By Charles Payne, CEO & Principal Analyst

Out of Fear

The good news is that when the Volatility Index (VIX) reaches levels it hit last week, it bodes well for the next six months, as it is usually associated with major pullbacks and corrections.

In many ways, the stock market reflects society as a whole, where waves of fear and anxiety magnify slight weakness. The knee-jerk reactions are excessive. This influences the stock market, sparking more buying or selling than warranted.  This means you must know what you own to ride the waves.

The Great Rotation

The long-awaited rotation away from Technology (XLK) has begun, and Health Care (XLV) has been the biggest beneficiary, led by Eli Lilly and Company (LLY).

Outperformance this year is much better than in 2024 and 2023.

It’s All Relative

The Invesco S&P 500 Equal Weight (RSP) is gaining strong momentum (see rate of change) against the cap-weight S&P 500 (SPY).

The Equal weight S&P 500 price-to-earnings (P/E) is at the historical average and is less expensive than those of the NASDAQ-100 (NDX) and iShares Russell 2000 ETF (IWM).

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

Charles Payne
Wall Street Strategies

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