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Afternoon Note

Epic Tug of War

By Charles Payne, CEO & Principal Analyst
2/24/2021 2:11 PM

It’s an epic tug of war and the bulls are regaining control.  The boobirds have been squawking for the last three days, sensing they might finally be right – they aren’t.  Yes, markets have to pullback, and there is no doubt there are cracks in the veneer of the rally, but the underlying fundamentals are getting better.   This means a major overall to valuations and assumptions will happen over the next thirty days as the United States and the world reopens. 

Keep that in mind, as there are other elements to the underlying rally story than free money.   With that in mind, winners are moving fast, which present other challenges from chasing to when to cash in – even if you bought on the notion of holding for more than a week.

I mentioned the NASDAQ 100 this morning, and it put up a serious fight this morning – fending off efforts to take it below the longer term trendline.

Folks, this index is only up 2% this year. There is value here, and at some point, the crowds will come back.  It helps that there were so few weak sisters, brothers, aunts, and uncles.

We hiked targets on a ton of ideas.  I am going to take some profits, not as an indictment, but to be disciplined and have dry powder to take advantage of renewed gyrations.

By the same token, I want to be close to fully vested and to keep finding new ideas.  The Hotline ideas are moving faster than designed, but I’ll take it. 


Comments
bought some APA @ the open. going to hold through the summer.

slim on 2/24/2021 2:31:20 PM
Hey Charles, great commentary. I've a question. I bought several stocks back in the spring and still holding. "Problem" is I'm up from 50% to 150% on a half dozen. I believe there is still huge historical upside. I know, I'm supposed to take profits. Help!

David Maliff on 2/24/2021 2:55:43 PM
I have done very well the last 2 years, but I get very when the market drops like recently. I believe my investments have dropped about 7 or 8 % in the last 7 to 10 days

Donald Hillgen on 2/24/2021 2:58:30 PM
This pull back has been great. The S&P could pull back about 2% and still be in this ascending channel.

sean s. on 2/24/2021 4:44:41 PM
i'm hoping for a 10% pullback over the next 30 days and that the next stimulus package gets the kibosh!

garro on 2/24/2021 5:29:59 PM
It's got to come down to go back up even higher! Stay with what you have and have a good mix that you are comfortable with and then don't micro manage everything. Right now it's a little tough to believe in the country with the bunch and where they want to take us, but over time history says the good will overcome!

Lorin K on 2/25/2021 12:06:22 PM
 

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