Volume ends mixed on the session, but stocks finish strong after the Fed raised rates yesterday for the first time in a year. We did close on the weak side of things, but the market was still able to hang on to most of its gains. There were certainly some bright spots today and we’ll continue to be alert for any new long signals. This market did avoid further selling and it was important for us not to see any follow-through. However, if it continues tomorrow and Wednesday’s low is breached we must adjust. For now, it is steady as she goes.
Sentiment continues to favor the bulls. AAII survey continues to see those who are bullish over the next 6 months above 40%. Bears did creep up over 30%. Neutral respondents continue to falter and now remain under 30%. What a change since the election. NAAIM survey ticked lower after showing active managers were more than 100% allocated to equities. This week we saw some active managers reduce long exposure and the NAAIM exposure index ended at 96.23%. There were some bearish bets placed by a few active managers. Perhaps hedging prior to the Fed.
Heading into the weekend we will continue to work our process finding new opportunities for us and our subscribers. There are no magic tricks or crystal balls to get you ahead. Hard work and continually adapting to the market we have is what will set you apart. We have been here since 2007 not because of flash or get rich quick. Our process is time tested and why we have lasted 9 years. Next October will be our 10th year! Hard to believe a decade of providing our services. Take advantage of our process and sign up!
Have a great Friday and have a great weekend.
