This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Active Traders Wary of Second Half of the Year

By Hal M. Bundrick

NEW YORK ( MainStreet)--Market volatility may be taming active traders, who admit they are growing a bit cautious in their outlook for the remainder of the year. Nearly 38% of traders polled for the Active Trader Sentiment Survey by Charles Schwab say they are bullish on stocks over the next three to six months - but that's down significantly from 52% in March.

Based on survey responses, most active traders believe they have done only an average - or slightly better - job of managing the markets as 75% said they would rate their portfolio performance with a "B" or "C" grade. A meager 4% would give themselves a grade of "A" for year-to-date returns. While over half (54%) believe that equities remain attractive, 37% are unsure if now is a good time to invest.

"These results show active traders shifting to a more neutral outlook on the markets in mid-June, likely in anticipation of volatility ahead," says Kelli Keough of Charles Schwab. "In hindsight, we know their outlook was largely accurate as the Fed announced it would likely begin slowing the pace of its bond buying program shortly after this survey was conducted, resulting in a spike in market volatility. In addition, these results show a slight drop in confidence - 58% of active traders say they are somewhat or very confident that their portfolios are properly hedged against potential risk, compared to 66% who expressed the same level of confidence at the end of the first quarter."

The survey also revealed:

  • Sticking with stocks and ETFs -- For active traders planning to invest in equities, 77% say they plan to purchase individual stocks while 72% say they'll buy ETFs. One-quarter plan to trade options.
  • Go tech - One-quarter of traders said they are bullish on the technology sector, up from just 16% in April. Other in-favor sectors were healthcare (17%), energy (15%) and financials (13%).
  • Toss to the option -- 28% of survey respondents said they currently trade options while 11% say they plan to start trading options in the next 12 months.
  • Working vacation -- 39% of active traders expect to keep an eye on their portfolio during a summer vacation but won't trade much, while a nearly equal number (38%) said they would be trading during their summer break.

--Written by Hal M. Bundrick

Check Out Our Best Services for Investors

Action Alerts PLUS

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
Quant Ratings

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
Stocks Under $10

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
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.48 0.19%
FB $83.61 0.72%
GOOG $555.17 0.00%
TSLA $190.40 0.00%
YHOO $45.20 1.60%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs