Are we all clear for a sustained rally ?

Since January of 2016 in S&P 500, we have gone down from 2081.56 to 1810.10, in 7 weeks we have lost 271.46 points or 13.04%.....IF you take this number in isolation, it is known as correction not a bear market.

Carter Worth is predicting 1575 in S&P 500...that is another 235 points or 12.98% from low of Thursday for a total loss since January of 506.56 points or 24.34% ....a definitely bear market picture.

What are the odds of Carter Worth being right......

There has been many famous pundits before from Joe Granville to Robert Prechter who made some right calls but were trapped in their "bearish slant for too long"...thus lost all credibility & following...

Granville kept looking for 800 on Dow and Prechter was preaching 400 for Dow for years.....now we know why it is bad to follow any pundit for too long.....

Current pundit were telling you, that for last 6 months 1575 is a given...well IF you believed that 6 months ago, you have lost lot of equity in the process.

It is important to deal with "current status " of any market, this way, you have an accurate picture in real time.

SO....all we had was a full blown correction, nothing more nothing less.....

In case anyone is not sure.....a pullback of 20% defines a bear market.......

Corrections were ranging upto 12% before, this time we went 13.04%...as we were facing many uncertainties like low low oil, Chinese slowdown and Fed tightening, considering all the challenges 13.04% pullback showed lot of resiliency.

Based on my multi decade experience, all charts are showing an enormous buying opportunity...charts are as bad as they can get on a short term basis......

YES...i believe that we should have a sustained rally of @ least 4 weeks, with usual profit taking bouts.

Buy stocks which you know well and try to max out your gains with 4 week patience.

It looks like an easy environment to make money in short term.

YES...all boats will be lifted again, this is what happens @ "double bottom lows"

Last Friday was a classic example of all boats being lifted with Banks, Oils and even Gold participated while gold was down for the day.

Most world markets are open on Monday except USA & Canada........

Good luck with your own take of market and stocks.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed