Who’s afraid of the big bad wolf?

“Now they all were safe inside
But the bricks hurt wolf’s pride
So, he slid down the chimney and oh, by Jiminey
In a fire he was fried

Oh, oh, oh, the three little free little pigs
Just winked and laughed, ah, woo

Who’s afraid of the big bad wolf
The big bad wolf, the big bad wolf
Who’s afraid of the big bad wolf
Tra la la la la” – Frank Churchill with additional lyrics by Ann Ronell

I’m back in Ruidoso at my office and I have a lot of thoughts and analysis about the economy, markets and other lessons from my trip to LA and Dallas last week. I’m putting the finishing touches on a big report for that and should have it in your inboxes for you tomorrow.

Have you been hearing quite a bit lately about how stocks are “safe” now? Are you finding yourself laughing about how the bears and the shorts out there have been so wrong for so long? It’s tempting to, isn’t it? But let’s check ourselves and maybe think about all the things that can and do happen to make stocks fall, pullback, breathe or even crash. In other words, let’s make sure we’re not being complacent. I’m about to trim some longs today, so stay tuned for a Trade Alert.

With every major stock index hitting all-time highs, this morning I posted this question in the Trading With Cody Chat Room, on Scutify, on Twitter and on Facebook.

“Who’s more scared right now, the bulls or the bears?”

Here’s what I heard back on Scutify, Twitter and Facebook. Hit reply on this email or come post your answer in theTrading With Cody Chat Room and let me know what you think as I’d like to hear from our many Trading With Cody subscribers who they think is more scared right now — the bulls or the bears.

CodyWillard It’s time to take the poll. Who’s scared more right now the bulls or the bears?

JeffMiller Since all of my fundamental indicators are solid, and our technical models are also positive, I do not see a reason for bulls to be worried. Data can have a comforting effect. When I did my Dow 20K interview with CNBC I said that I expected the next 8-10% to be pretty easy. I also do not think there is much Trump effect built in, besides the general small business feeling that it will be better.

RobertMarcin Well cody, the answer is in. the bears, or those that are left, are more scared. the bulls are as full of themselves as i can remember. that doesnt mean they can be right for a while. but i dont see a lot of upside in the markets from a bottoms up fundamental/valuation basis on most stocks. LIKE COKE. hahaha. speaking of $ko, buffett now big in $aapl. so just now he figures old tech is cheap?!? hahaha

RobertMarcin re trump, i like his pro business ideas. tax and regulatory reform are major positives. but i wonder if he is not going to be guilty of overpromising and underdelivering. he does speak off the cuff frequently and with no shortage of hyperbola. even if its no fault of his own, markets will not be pleased when they see less progress on his wonderful, amazing, phenomenal tax cut plan than they expect now.

ScottRothbort As I always say, its not a matter of being scared, its a matter of who needs the market to move their way. The bears are in hot water since the 1812 double bottom in the $SPX last year. That is a 30% move against them. They are not scared. They are desperate. – Long $SPO $SPXL

Livingston67Ideas Are there any Shorts left……$$$ Don’t see how you can short financials or energy….. these two groups should carry this mkt…. Bull Market…Speaking of shorts that are scared…. just shorted a nice piece of $SODA…. I am breaking every short rule I have…. Shorting a leader equals stupid…. But gonna give it a shot.

Spekoliunas Bears are clearly scared. Their most hated words are “tax cuts”. Lots of short covering, + money flow from bonds to stocks, + new money, which were on hold because of election, come to the market on more political certainty in US. I am cautious bull.

@codywillard Who’s more scared right now the bulls or the bears?

Poll Results:

39%Bulls are more scared

61%Bears are more scared

Cody Willard 1 hr It’s time for the poll. Who’s more scared right now the bulls or the bears? Post your comment below please.

Subir Bears would be scared if they weren’t already bankrupt

Bill Bears! Time to trim more?

Jeffrey I remain short-term bullish and long-term catastrophic.

Kevin I am with Jeffrey

Alejo Ortega Bulls!!!

Žilvinas Speteliūnas Bears 😉

Keith I think so many are short term bullish long term disaster but no one gets out.

Boruch Bears are bewildered and can not remember a good feast in years.

Richard Bears are always scared but then Siegel turned a bit bearish today so that’s concerning

Logan #QE ending leading to world collapse of life bears died in October of 2014. 41 straight days of nothing going on intraday in the market… Not a 1% move.  Oil reflation trade has calm down credit spreads, not much out there yet to get the market awake. If you’re a true cycle turning bear, then you’re scared, if you’re looking for a short term pull back at some point, you’re probably getting excited.

Ron Bears …………………..

Dathan The bears. The bulls need to start being a little cautious though. Many stocks are priced to perfection. One “Breaking News” event could turn the market in the other direction. Iran, North Korea, and Russia should all be monitored closely.

Mike Bears but Bulls are a close second…LOL

Join us for today’s live Q&A in the Chat Room at 2:00 pm EST. If you can’t attend live, email your questions to support@tradingwithcody.com and I’ll get them answered.