All of the major stock market indices saw more all time highs but this time it looked like a serious bull rush with the market opening flatish and pushing higher and higher all day. Some of the “old” defensive leaders came back to life like healthcare, consumer staples and utilities. This market is beginning to feel like a melt up which usually sees even more vertical gains, but which also ends in ruins. In my 2013 forecast, I called for a front loaded year with the gains early and I am not wavering from that. 1987 has been stuck in my mind since late last year and this is how it felt back then.
I am going to be on CNBC’s Squawk Box at 6:30am on Wednesday discussing the market’s recent surge to new highs along with some areas of concern and which sectors may be poised for more gains. And no, I do not believe the bear market in Apple is over. It recently hit my second downside target at $400 and is bouncing as it should. More weakness should await the one time darling on it way to $300.
A new Street$marts has been posted!
Every once in a while, I get slapped by the anchor. This time, my earpiece was fading in and out and I could not hear her interrupt. http://video.foxbusiness.com/v/2286720066001/2013-a-front-loaded-year-for-stocks/
The Dow and S&P 500 hit all time highs today, but the Russell, S&P 400 and NASDAQ did not. We have some worrisome signs, but they can and usually persist a while longer before any serious damage. Gold stocks were the leaders and I thank them for the immediate reward after the comments on Fox Business.
Here is a spirited debate I did on CNBC regarding dividends, not the panacea most investors think!
I am going to be on Fox Business’ Markets Now at 1pm today discussing the abysmal jobs report on Friday, the stock market’s rather muted reaction and what lies ahead this quarter.
There are a few scenarios which can play out from here and I will lay them out in detail this week in Street$marts, which I hope to work on in a few days. In short, my upside max of Dow 15,000 and downside of 13,700 remain the same. If you are or want to be bullish, the better and healthier path is sideways or down first and then an explosion to the upside later this quarter or over the summer.
Here is yesterday’s segment from CNBC’s Closing Bell. http://www.investfortomorrow.com/InMedia.asp
We have month and quarter end on Thursday so I would discount any unusual action until the new month begins next week. The bulls are hanging in, trying to push the S&P 500 to an all time high and I think that should be seen since it’s only a few points away here. But my comments from the other day still hold. I see the Dow’s potential upside as 15,100 and the downside as 13,700. There are enough cracks to warrant action, but not enough to worry about the bull market ending.
So far, 2013 looks a lot like how 2012 and 2011 began. And for those who remember, this has the look and feel of 1987 for different reasons although I am definitely NOT calling for a crash!
Enjoy the holiday shortened week for those of us who have it off! I think Good Friday is the only day where Wall Street is closed but not much else is.
Again, Happy Passover and Easter for those who observe those holidays!