Thursday, July 9, 2009
RFs Final Market Prediction
The market is rallying but nothing major. I believe this earnings season will be a surprise but next season will be bigger. I believe the s and p will trade at 930 high end to 845 or 870 low end, in a range for the next 2 months as summer volume takes place. I see value being created with energy and some financials and tech. I don't believe we will see 700 or whatever CNBC predicts because there is stablization in home pricing, PMI is rising, inventories are being restocked, stimulus will take place in late 2009, which will be seen regardless how dumb it is. As end of summer approaches, the green shoots will be more real in my view from supply sides and volume will increase, creating a huge rally in stocks to 1050 on s&p. The key is to have cash and buy the dips and short or sell the rips. I am more convinced than ever that we have not even begin to see big rally..we shall see if RF wins or loses.
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