Sorry guys, I was suppose to publish this in Monday, but I somehow messed up this blogging software, so I finally got this working today. The market call is a little late, but still valid.
Last week, market leaders like Apple started to lag the overall stock market rally. Such an act is commonly considered to be a sign of a major stock market decline, but I don’t think so (which is why I bought Apple stock on Monday). I have to admit, even I was fooled into believing that 1470 (for the S&P 500) was going to be the market top, but I now believe I was wrong. A couple of reasons:
- The big one being QE3. Once QE3 helps the market break its old time high, the market will self fulfill its prophesy and soar higher.
- The economy and the job markets are stable.
- Home prices are stable.
So here’s my call for this week (I’m going to do a market call once a week, starting from today). In order for the rally to continue, earnings season (starting today) need to be good. I think this is definitely the case, since the economic reports have been pretty good, and so have the PMI numbers.
But despite the slowing economy, the fiscal cliff, and the economic recession I’m predicting for Q1 next year, I think the markets will definitely surge. keep in mind that the fundamentals and short term stock prices do not have a direct relationship.
BUY! The bears aren’t realizing one thing – there’s no way Bernake is going to let the market fall in this election season. And we all know that the majority of traders simply jump on the bandwagon…….