The Week Ahead: Are You Ready for a February Surprise?
According to recent Bloomberg survey, investors are the most bullish on stocks in at least 3-1/2 years, and the powerful stock market rally certainly reflects that, but MoneyShow's Tom Aspray counsels that it's exactly during times like these that caution is warranted more than ever.
The stock market continued to push higher again last week as more market skeptics gave up on their bearish stance. With the Dow Industrials and S&P 500 now back to levels last seen over five years ago, it is becoming harder for many to remain on the sidelines. With Friday's positive close the S&P 500 ended higher for eight up days in a row, which has not happened since 2004.
The market has been very resilient over the past few weeks as any early selling was well supported, and by the end of the day, the major averages were back into positive territory. While this is very encouraging for those who are long, it is quite frustrating for those who are belatedly trying to get into the market.
The startling performance of stocks like Netflix, Inc. (NFLX), which is up 50% this week also can encourage some to jump ion at the wrong time. As I noted earlier this month, it was the least liked stock by Wall Street and as I posted on January 20, the weekly technical studies were strong.