980 Target on the S&P 500

By iamned - Last updated: Wednesday, May 13, 2009 - Save & Share - 8 Comments

The following economic data is due this morning:

7:00 MBA Mortgage Applications
8:30 Retail Sales
8:30 Import/Export Prices
10:00 Business Inventories
10:30 EIA Petroleum Status

None of these will have a negative impact on stocks because it’s either not a big deal and or priced in. The only data point that could move the market is retail sales, but those would have to be absolutely god awful to see any substantial selloff. As written in more detail here retail sales aren’t a very reliable indicator of overall economic heath. All bad news will continue to be shrugged off as stocks scurry up a very high wall of worry.

The huge funds that move the market aren’t going to be selling anytime soon. They are loading up on Google, Apple, Rimm, Mastercard and other smartist, globalist stocks that benefit from a falling dollar and modest inflation.

The technicals are still very bullish. Stocks have been consolidating for the past two days on lighter volume, and are due for yet another break to the upside. The more these doom and gloomers try


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8 Responses to “980 Target on the S&P 500”

Comment from 444
Time May 13, 2009 at 2:29 pm

Drumming my fingers, waiting… Watching and waiting. Go ahead and climb that wall, Mr. and Mrs. Stocks! Anytime now.

Comment from jtone
Time May 13, 2009 at 3:12 pm

Where as I appreciate your enthusiasm for economic prediction and analysis, I am contrary to your sentiment that the market will keep going up. Doom and gloom is not my nature, only trying to be correct. It is foolish to be an optmisist or a pessimist, only a realist. My prediction, boom goes the dynamite, down we go. I’ll check back in a little bit to issue apologies and garnish more knowledge, or we can figure out how to read these markets more accurately if and when my predictions become a reality. Time estimate, less than a month till the next plunge. Why? No economic sustainability and impending commercial defaults, credit card defaults, and addition foreclosures. It be nice if it werent so because maybe the job market would be alot better (i am not unemployed)…its just that mickeys ds sucks, except for their tea and apple pies. JK I work at burger king. Maybe monarchys are better. http://www.dshort.com/charts/bears/four-bears-large.gif u really think this crisis is not as bad as the others before? In additions http://www.dshort.com/charts/bears/total-bear-comps-2007-1929.gif danger to the upside or downside. For your sake I hope you are right, for mine and my strategy, im contrarian. You put in alot of work and just want it to pay off.

Comment from Kevin
Time May 13, 2009 at 10:49 pm

Wow! You were wrong for once, the market closed way below 900. Do ya think its a good time to load up and go long or should I wait for it to pull back more?

Comment from Lee Lucas
Time May 13, 2009 at 11:03 pm

For once?????

Comment from Jesse
Time May 14, 2009 at 1:07 am


Comment from TJ
Time May 15, 2009 at 2:45 pm

Check out S&P earnings lately?

Comment from TJ
Time May 15, 2009 at 2:45 pm

The missing link

Comment from TJ
Time May 15, 2009 at 3:08 pm

This chart-of-the-day will help as well:

You gotta see this chart! “Today’s chart illustrates that 12-month, as-reported S&P 500 earnings have declined over 90% over the past 20 months (with over 90% of S&P 500 companies having reported for Q1 2009), making this by far the largest decline on record (the data goes back to 1936). In fact, real earnings have dropped to a record low and if current estimates hold, Q3 2009 will see the first 12-month period during which S&P 500 earnings are negative.”

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