The bullishness of investors towards the stock market has touched record highs, with Wall Street itself performing to record levels. That should mean any experienced online stock brokerage would witness hectic activity to chase the market.

On Tuesday, November 26, US stocks ended at all-time highs, with the major indices securing November’s 10th record close. In November, the S&P 500 rose by 3.4% and secured a 25.3% year-to-date gain. The Nasdaq has gained 30.3% thus far in 2019, and was up 4.3% this month. The Dow had a 4% rise in November and a year-to-date rise of 20.6%.  

Overwhelming Bullish Sentiment

The ROOF (risk-on/risk-off) score, developed by stock market research firm Axioma, is 4.8. That translates to over 95% of the time, when considering historic readings. That’s a significant percentage, which shows that never has the market shown such bullish sentiment. In this context, MarketWatch Deputy Markets Editor William Watts estimates that with the record highs of Wall Street, investors would go through a feeling called “FOMO” (fear of missing out). Investors and traders don’t want to get left out of this positivity and look to start getting aggressive in their decisions with the expectation of getting the most out of this positivity.

Aggressive Market Chasing Perhaps Not the Right Strategy

But that aggressiveness may not always be the right thing to display now, says Canaccord Genuity analyst Tony Dwyer. While this analyst is bullish when it comes to the equities’ long term outlook, he did call for a market pullback earlier in November. Dwyer does not endorse making market decisions with a view to profitability, just because you’re afraid of missing out.   

Dwyer has warned of a stock pullback, reckoning that the indicators of Canaccord Genuity were indicating overbought conditions. Since that call for a temporary correction was made, the stocks have been up just a little more than 1%. So should you give up on those indicators and wait for the market to push higher going towards the year-end? Dwyer doesn’t think so.

Situation Now Different from 6 Weeks Back

His point is that stocks were going through a breaking down process around 6 weeks back. That time the Cboe Volatility Index (VIX) was crossing 20 with over 90% of S&P 500 components trading above their 10-day moving averages. Then we saw an increase in negativity, with experts predicting the market decline experienced at the end of 2018 to show its head again. It was suggested that the time called for an aggressive but tactical stance. Dwyer observes that right now it’s the opposite happening. The markets are rising to record territory, with the bulls dominating. The volatility index is now below 12.

The opinions of experienced analysts can help you make the right decisions so that you don’t just follow trends but analyze in-depth, with the help of data, how any action you take would impact your investment goals. With advanced stock trading software and zero commission trading, TradeZero could be just the online broker dealer you need to get started in trading stocks. Get in touch with us at 1 954-944-3885 or feel free to email us at   


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