Hi Don,
I noticed that nasdaq finally got off the can (1600-1700) and started its march to 2000.
My contention has been that the sell-off in July was a totally sub-optimal response to the higher revenues and higher earnings reported by most tech companies. And now we are seeing the buying that should have occurred July. The real explanation is not that silver bullets are being fired everyday at this time, but that poison bullets were being fired by frustrated shorts back in July to try to spook longs into the stampede and double dip recession/depression that shorters prey on.
Anyway, that's all in the past. Now that nasdaq is at 1800, and shorts are wailing and gnashing teeth, is the rally over ? Well, let's see what force has been propelling stocks higher and see if there's more where that came from.
I see no reason to vary from the contention that revenue and profits will continue to increase. So is that trend on-going or not ? With GDP revised upwards, retail sales up, personal income up, this and that up, I think the up trend continues.
Except for one negative, which is higher interest rates. Are they high enough to cause the feared double dip ? I think not yet. And so onward and upward we go. My estimate is that Q3 reports will mostly show higher rev and profits - both q/q and y/y. To the extent that pans out, we will have more up-side to enjoy.
Sarmad |
