With the price breaking through that blue upper trend line on Thursday, I am considering that a crack in the armor. We still have a week and a half to go before the rate hike on the 13th and so it appears that we can reach the 2700 range. Especially with all that dip buying that happened today. Yep...the Central banks really want a rate hike so they are not going to allow the market to start correcting too early. Today was a perfectly good example of that. At 2700 it appears that we could get a 11.3% correction. All the way down to that very very long term black trend line. After that, I have said it all along, I think we push much much higher in the markets. Sentiment is neutral and with a 11% market correction, that will hurt sentiment even more. We have to get into a true bubble with sentiment reaching extremes. We are not there yet. Not even close. DOW 30,000 by maybe Mid 2018? Maybe even 40,000 by 2020. Now that is what I would call a bubble. And what will follow is going to be more catastrophic then we have ever experienced or thought possible in these modern times. So in the mean time, lets make as much money as we can and prepare for the bubble top. Hopefully by then Gold will be down at $600 or less. That way we can easily know where to put all our money. GL
Hello SalN any updates for these days? Can the SP reach the 2700 are before FED meeting? Thanks
maximus189
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I agree with you I think that the s&p can go up to 2900 with this tax cut. Each company will get about 10%-15% extra earnings so I calculate that there will be 10%-15% more left to go in the S&P this doesn't factor in QT. But i think because of low inflation the money hasn't been in circulation. Which means it hasn't been factored into companies current earnings. Which means that QT should have no effect like Janet Yellen said on the stock market. It should be like watching paint dry. Puts it around 2900 maxed out in mid to late 2018.