Business Magazine

Technical Tuesday – Setting Up For What?

Posted on the 27 November 2012 by Phil's Stock World @philstockworld

With just 4 trading days left to the month and then just 19 more to close out the year – it's already been a wild ride but, as you can see from Doug Short's S&P chart, we're up a very solid 200 points for the year (16.66%) and not likely to give much of that back and, of course, 1,400 on the S&P represents a 100% recovery off those 2009 lows.

That's 25% a year folks!  What are you complaining about?  No, we didn't go up in a straight line but sticking with pretty much any stock over the past 4 years has been a winning strategy and that's been replenishing 401Ks and IRAs and Pension Funds and has allowed the investing class to recoup most of their losses from the crash and NOW the question is – what happens next?

Technical Tuesday – Setting Up For What?
Surely we can't grow the market 25% every year.  This year we will struggle to get back to 20% (1,450) – if it happens at all and, realistically, we have to assume that closing high of 1,565 was not deserved at the time and, if we figure it was a 10% overshoot of the proper top – then 1,400 IS the right level for the S&P to be hanging out at.  

Clearly we still have plenty of economic challenges to deal with and the World is not growing as fast as we thought it was in 2007 but it did grow and Corporate Profits are higher now than they were in 2007 and, if anything, tracking at the top of their 20-year trend so it makes sense that the S&P should be reflecting this – risk on or risk off.  

 

IN PROGRESS

 


This article will become free after 48 hours (see below for free content). To read the rest of this article now, along with Phil's live intra-day comments, live trading ideas, Phil's market calls, additional member comments, and other members-only features - Subscribe to Phil's Stock World by clicking here.

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • DusitD2 Khao Yai: Romance in the Hills

    This week we escaped the relentless heats of Thailand’s lower lands, with a stay in Khao Yai, a region not far from Bangkok, which... Read more

    9 hours, 34 minutes ago by   Allanmwilson
    DESTINATIONS, EXPAT, TRAVEL
  • Experience Mexico City From the Top of a Bus

    Experience Mexico City From

    Mexico City is a fascinating and beautiful place to visit.   Everywhere you go there are artworks, murals and sculptures to enjoy as... The post Experience... Read more

    10 hours, 53 minutes ago by   Imogenl
    FASHION, LIFESTYLE
  • Experience Mexico City From the Top of a Bus

    Experience Mexico City From

    Mexico City is a fascinating and beautiful place to visit. Everywhere you go there are artworks, murals and sculptures to enjoy as the Mexican's seem to reall... Read more

    10 hours, 53 minutes ago by   Imogenl
    FASHION, LIFESTYLE
  • Self-Transcendence 3100 Mile Race 2017 – Daily Updates – Day 32 – Alan Young

    Self-Transcendence 3100 Mile Race 2017 Daily Updates Alan Young

    Latest news, Multiday News, Self-Transcendence 3100 Mile Race Self-Transcendence 3100 Mile Race 2017 - Daily Updates - Day 32 Daily Diary Wednesday 19th July ... Read more

    11 hours, 22 minutes ago by   Abichal
    OTHER SPORTS, OUTDOORS
  • Matcha Azuki Mochi Buns

    Matcha Azuki Mochi Buns

    (basic bread recipe adapted from cook kafemaru)Ingredients:110g Blue Jacket Bread Flour40g Blue Jacket Cake Flour1 Tbsp matcha powder1/2 tsp instant yeast1/4 ts... Read more

    11 hours, 40 minutes ago by   Cathysjoy
    FOOD & DRINK, RECIPES
  • Rebel Role Model Podcast with Cynthia Smoot

    Rebel Role Model Podcast with Cynthia Smoot

    Nancy Coblenz or Rebel Role Model with OSC's Cynthia Smoot (May 22, 2017) Rebel Role Model is a new podcast featuring interviews of everyday disruptors... Read more

    The 20 July 2017 by   Ohsocynthia
    DESTINATIONS, LIFESTYLE
  • Movie Review: ‘War For The Planet Of The Apes’

    Movie Review: ‘War Planet Apes’

    Movie Review: 'War For The Planet Of The Apes' Plot: Two years after the events of Dawn of the Planet of the Apes, Caesar (Andy Serkis) and his tribe of apes... Read more

    The 20 July 2017 by   House Of Geekery
    ENTERTAINMENT, TV & VIDEO

Magazines