[In spite of all that is seemingly wrong with the U.S. economy] I think we are on the verge of entering the euphoria stage of this cyclical bull market where traders become convinced that QE3 is a magic elexir with no unintended consequesnces. [As such,] I see a strong acceleration and a significant and sustained breakout above the S&P 500 September high of 1475. (Words: 264 + 3 charts)
So says Toby Connor (http://goldscents.blogspot.ca) in edited excerpts from his original article* entitled Euphoria Stage.
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below to some degree for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.
Connor goes on to say, in part:
You can see in the chart below in 2006/07 the intermediate cycle accelerated rapidly past the prior intermediate top at 1326 in a classic runaway move. While this certainly felt good at the time, it was the beginning of the end as the housing and credit bubbles began to implode.
I think we are on the verge of something similar as I believe QE3 will drive the market high enough to test or marginally break the all-time highs. However, it’s also going to start an upward spiral in commodity inflation that will eventually poison this fragile economy and be the straw that breaks the camel’s back.
Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
Heard about the “Fiscal Cliff” lately? How many times have you heard it mentioned in the last few hours? Is the media coverage about the “Fiscal Cliff” causing investors to look or focus in the wrong direction for clues to the market’s next significiant move?
The S&P 500 formed a three-peak pattern inside the trading range from September to October and is now at the beginning of a “Three Peaks and a Domed House” formation. The current swift advance of the SPX could reach the level of 1460 to re-test the previous high. Let’s take a look at some charts. Words: 255
This article compares the 2012 year-end price forecasts for the S&P 500 from leading research sources with where the index is today, what various statistically generated price probabilities say about the year-end price [and, as such, how we plan to allocate our assets in the interim.] Words: 1445