Wall Street Strategies
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Afternoon Note

In Awe

By Charles Payne, CEO & Principal Analyst
3/26/2020 1:39 PM

I'm in awe of today's session.  It’s very encouraging. The signs pointed to this happening, as the market exhibited increased resolve last week until Friday and every day this week.  

Big business, especially Boeing (BA), are benefiting from the bailout package.  Multinational names are also breathing a sigh of relief, as the dollar comes down against other currencies.

It’s still the most beaten down names which continue to outperform (oil and cruise ships) and top the list of percentage gainers.  It’s particularly interesting considering crude oil is down today.

Because these names keep leading the way, Wall Street keeps calling for a re-test of the lows.  Oh, also because most of the experts missed this rebound.

Volume is lower today than the prior session and trading feels more orderly – there isn’t buying panic just yet, as the experts are waiting for the next pullback. 

For the reminder of the session, its important the S&P closes above 2,571 and makes a run to 2,711. I do want to note, this move doesn't mean downside swoons are over, but it proves this market can soar, which is important to remember.

S&P 500 Index


Communication Services (XLC)


Consumer Discretionary (XLY)


Consumer Staples (XLP)


Energy (XLE)


Financials (XLF)


Health Care (XLV)


Industrials (XLI)


Materials (XLB)


Real Estate (XLRE)


Technology (XLK)


Utilities (XLU)





Charles, why do you think technology is underperforming the last few days?

Eugene Whitson on 3/26/2020 1:46:42 PM
The market isn't a daily report card or even a yearly report card on business and stock market values or opportunities.  Tech has been amazing over the past year, three years and five years so in an oversold environment money is seeking opportunity not making a decision based on fundamentals per se and not condemning any sector (see tech).   The funds buying in the midst of a bear market with lots of dark clouds is high risk money looking for high returns and that's the most beaten down names. CP

Charles Payne on 3/26/2020 1:54:19 PM
Suspicious (lucky?) enough to go all cash prior to Corona drops. I then traded both my watchlist (created with your pillars guidance) and some big losers that were big movers (up and down) during the last two weeks. Unbelieveable....now up 50+% for the year. So, my question is whether I should now move 30-50% into a good index fund (e.g. VOO) and be happy with the potential 30% upside remaining while keeping powder dry in case we see retesting of the lows?

Ed on 3/26/2020 3:16:14 PM
the tec companys should be huge winners out of this even with china exposure everyone is online shopping or streaming or working new economy

Sean p Nugent on 3/26/2020 5:34:18 PM

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