Jeff Saut Comments on Back to Back 90% Upside Volume Days
Following a rise of nearly 500 points on Dow over two days, CNBC interviewed Raymond James’ stock guru Jeff Saut regarding the implications of the bullish action .
Saut explained the concept of 90% upside volume days and commented that back-to-back 90% upside volume days are pretty rare events. “The performance of the stock market following that about one month later is higher 83% of the time, and three months later has been higher 100% of the time,” Saut said.
Saut said the government has become a little less dysfunctional and defended an attack by host Simon Hobbs on that notion.
“The rhythm of the market is that human nature doesn’t really change,” Saut said, and added, “I think it’s a mistake to get too bearish here.”
Saut looks for the economic recovery, including housing and autos, to extend into 2013. Saut added that despite recent strong auto sales the average life of a car in the U. S. is still 12 years.
The interview continued with Saut commenting on which sectors he likes (technology, consumer discretionary, and financials). The only sector he doesn’t like is consumer staples because there were a lot of money managers “hiding out” in them worried about the fiscal cliff. The video showed four of Saut’s favorite stocks (Rayonier, Covanta Holding, Regions Financial, and Huntington Banc.).
Back in August, Saut expressed his belief that the stock market breakout was for real [link].