I expect the stock market to rally another 200 points before any minor or major correction.
The impetus for the next correction might be China’s interest rate increase of 25 basis points.
However, the market should continue rallying just because it is rare to have more than 3 bad January consecutively. This Jan, the market should end on a high note.
Then we have the january effect, where stocks outperform in this first month would spread to the rest of the year. Furthermore, this is the 3rd year of Obama’s presidency. Historically, this will be one of the best and most bullish years.
The state of the union address will help stocks continue its upward climb. The DOW is supported by really good tech earnings and GE’s earnings.
McDonalds’ good revenue means that the market is now much more stable than before.
With most crisis out of the way, investors are pouring in money into stocks.
We have seen some phenomenal stocks like FFIV plunge 20% on normal earnings… Investors are now looking at ratios.
I would stay away from CRM given the uncertainty with cloud computing. However, if the stock dips below $100, it is a good buy chance.
Netflix is next. I would bet on a huge movement either up or down after its earnings. It is cool to buy some straddle options.
LVS earnings is also coming on Chinese New Year, Mr Sheldon surely wants to boast about his company during the auspicious day.
BAC is correcting, I am looking for a buy opportunity soon.
From my vacation photos. Niagara Falls.
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