This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Day Ahead: The 'Mean, Nasty Email' Stock Indicator

Years ago, I never thought I'd be sitting here with the experiences in financial services and media that I have had through the years. I actually thought that culinary school was in the cards, or some other profession that demanded intense performance on a daily basis. The majority of the experiences for this positive, happy dude have been wonderful, and I learned the ropes in all facets of the business from true bright minds.

However, when looking back, there have always seemed to be periodic bouts of oddities. For example, there'll be some mean and nasty email from a person sitting in their parents' basement, seeking a double-bottom chart pattern and swearing they are experts on politics after reading a free, five-page local newspaper. After asking around my circle of friends yesterday, and recalling periods of stress in the stock market that caused a general attitude shift among humans, I think an unscientific indicator on stocks I will use from now on is the "Mean-and-Nasty Email Indicator." Perhaps Foursquare or Google (GOOG) will develop an algorithm to track psychological changes being conveyed through an email, but for now I am applying good old common sense.

So, you ask, where is the nastiness coming from at this point in time?

  • Some stock was bought two weeks ago after careful evaluation, with an iota of trust thrown the direction of the bullish professionals. Today, arrows have been able to pierce the iron side of the ship named "rally."
  • An investor is unable to find new themes, neither in order to profit from the next big thing or to avoid a mini black swan event. (Maybe, on that first item, some went to check out SecondMarket and purchase a few shares in the latest video sharing startup with no revenue but a climbing valuation.)
  • There is a sense that others have all the information and that, more often than now, the small guy gets the shaft.

Surely there are at least 10 items worthy of addition to the list. When you boil things down, though, the rise in negativity is rooted in the type of fear in the investing process not captured in the CBOE Volatility Index (VIX). It's the fear of picking a heavily researched stock and then watching it lose 10% into the next earnings report due to something coined "euro debt risk flare."

Hey, I understand that fear and hate -- I use them as part of the bedrock under how I articulate what I am seeing in the market and within specific companies and sectors. Understand this: The market is dynamic and themes get washed ashore as quickly as they get swept out to sea. In order for you to win in a manner supported by a firm understanding of investing, there has to be a certain respect for that dynamism, and an attack plan to alter course. Don't drink Hatorade; it clouds your judgment and could hurt the portfolio.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums


Chart of I:DJI
DOW 17,883.64 +163.72 0.92%
S&P 500 2,099.63 +19.22 0.92%
NASDAQ 5,150.1560 +41.49 0.81%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs