Many hate this rally ?

20 trading days ago many CNBC pundits predicted 1575 is looking solid in S&P 500, that is where they predicted that this correction out to go & then some weak recovery. Yes they are still around getting paid to make more negative predictions and who knows there are few followers hanging around for their word of wisdom. 

Most CNBC commentators are and were extremely bearish and do not look happy @ all that this TAPE keeps going UP despite their collective experience of 200 years?

Since that famous prediction of 1575 about 7 months ago, this has been a super bad call based on history of bad predictions.

In last 20 trading days we have gone UP 212.09 points or 11.72% in almost a straight line in S&P 500.

Dow & S&P 500 are above 50 & 200 DMA...many technicians pay serious attention to averages crossing this technical indicator, but our pundits on CNBC remains dazed and cannot think straight anymore.

Now we are @ much talked about danger zone of 2022, before it was series of lower numbers in a row.

Guess what.....we may not stop @ 2020 either, it is on its way to 2080 area.

Fed is on tap for Wednesday statement, it may talk about strength in US indicator but it may also say that they need to monitor more data for hike in interest rate.

Yes..we may pause to show respect for Wednesday's contradictory statement from Fed, but we should resume going up until RSI @ around 70 area.

CMF is hitting 0.387 which is near highest point in last 6 months, this means we have major inflow coming in.

ECB has set the tone for growth in EU, which is also good for equities.

Oil has reached a level where balance has reached in between too low and reasonable price for oil. We may settle around $40 area for a while.

Gold, is still in uptrend based on negative interest or no interest environment. Gold had seen a 5 year bear market and is in the process of reversing that trend.

Chinese stocks are coming to life and has more room to grow.

All in all, we are witnessing a major shift in many sectors, which has the hallmark of a major bull market.

Nothing wrong in booking profit when we hit 70+ RSI and deploy funds in 40+ RSI stocks, this can be repeated over and over in this TAPE.

SO..those who hate this rally so far, will hate it more, as we go forward towards new series of all time highs.

Good luck with your own homework and take on this market.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed