If you will remember old Ralph Acampora, technical analyst and legend in his own mind star of brokerage house junkies came out and declared in early Sept. that the end of the market was near. Today, he clarified those remarks.
i got to tell you, that rally in late august, early september, was like throwing cold water on me. For the first time i saw emerging markets come back very, very strong. and complimenting that was the leadership in small and mid cap stocks. On top of that, technology. Once the dow and the dow transportation made new highs I backed away from that opinion. i'm still a secular bull. i'm just as bullish today as i was before the correction.
Q: Do you think that that small caps continue to justify the move and continue to move higher?
R: Yes. in fact, I have had a scenario, a sentiment scenario, long term outlook how people -- how they buy stocks. The first phase of a secular bull market is led by quality. Second phase of a secular bull market, when people start to feel about things, they buy secondary stocks and that's exactly what they've done. And third and final phase, total greed and complacency. We're not close to that. The secular bull mark has a lot of life yet.
Q: Why is your target 1800 if you're so bullish?
R: I see higher than that.
Q: Once you get momentum going with earnings and now that europe's stabilizing to improving, that's a very modest target.
R: Yeah. it has been. it has been. That's a number i've been using for a while. i can very easily put 1850 on top of that, someone's talking about year-end. i'm being conservative. longer term, oh, good god, much, much higher, especially if you look at the s&p chart that I have. This is a secular bull that that has at least another 10, 15 years to run. |
