SPX to 1200 and beyond??

There should be a short term pull back of another 5-7% (that is fast becoming a loser's game to play) but to think outside the box, there may be a meltup of several hunderd pts...Many already have 1200+ as a target..But such a massive momentum will get even more momentum and this could go much beyond that....Such a meltup is not fictional, as QE & zero rate policy would fuel this asset bubble.. people should note that once bubble is in place, they keep going up...RE was one example. USD index could fall to 70 or lower....unless FED hikes and takes liquidity out, i don't think it is fictional.... stochs work in range bound markets..so using those indicators & RSI/macd etc do not work in high momentum trending market. And this market has already shown what it is capable of... July SPX was 880 or so..so 210 pts in 3.5 mo is just amazing..... i would not be surprised at eur.usd at 1.80 and SPX at 1400 by yr end..... If this happens, FED ultimately will be forced to pull out sooner that they wished, and thus market fall ensues..Someone had said here why would this market fall..some negative catalyst has to be present...people warn not to exit QE prematurely and give example of depression as a reason for that but something must have forced FED's hand even then...Like they say there is no free lunch and no magic wand even if benny believes so.. BUY OIL/ENERGY, GOLD, tech till you hear from FED

Edited by andiron, 15 October 2009 - 07:55 PM.

I love ,after big moves in either direction, hearing numbers well beyond next up targets...in this case SPX 1100. Lets see how it acts as that is tested/approached before we get into 1200 and beyond. If talking blowoff, we could throw out all kinds of numbers I guess.

you could rationalize in EW terms assuming a bullish wave from march low and we are just ending the 3 rd wave ( as against the bearish case of A_B_C)

I love ,after big moves in either direction, hearing numbers well beyond next up targets...in this case SPX 1100. Lets see how it acts as that is tested/approached before we get into 1200 and beyond. If talking blowoff, we could throw out all kinds of numbers I guess.

There should be a short term pull back of another 5-7% (that is fast becoming a loser's game to play) but to think outside the box, there may be a meltup of several hunderd pts...Many already have 1200+ as a target..But such a massive momentum will get even more momentum and this could go much beyond that....Such a meltup is not fictional, as QE & zero rate policy would fuel this asset bubble..
people should note that once bubble is in place, they keep going up...RE was one example.

USD index could fall to 70 or lower....unless FED hikes and takes liquidity out, i don't think it is fictional....

stochs work in range bound markets..so using those indicators & RSI/macd etc do not work in high momentum trending market. And this market has already shown what it is capable of...

July SPX was 880 or so..so 210 pts in 3.5 mo is just amazing.....

i would not be surprised at eur.usd at 1.80 and SPX at 1400 by yr end.....

If this happens, FED ultimately will be forced to pull out sooner that they wished, and thus market fall ensues..Someone had said here why would this market fall..some negative catalyst has to be present...people warn not to exit QE prematurely and give example of depression as a reason for that but something must have forced FED's hand even then...Like they say there is no free lunch and no magic wand even if benny believes so..



BUY OIL/ENERGY, GOLD, tech till you hear from FED

An excellent post in my opinion. Buy Oil and Gold has been my theory. Shorting stocks just doesn't seem to be where it's at.

IT

If this happens, FED ultimately will be forced to pull out sooner that they wished, and thus market fall ensues..Someone had said here why would this market fall..some negative catalyst has to be present...people warn not to exit QE prematurely and give example of depression as a reason for that but something must have forced FED's hand even then...Like they say there is no free lunch and no magic wand even if benny believes so..

The Fed recently came out with their plan to stretch the remainder of the 1.25 billion intervention over the next six months in contrast to the original plan of the next three months(That was a month ago so over the next five months). I think the Fed is aware of your spike-crash-and-burn scenario and absolutely does not want a mini 1999-2000 all over again...hence the adjustment.

My gut read on this is the market and/or economy convinces the Fed they need to jam more aggressively sometime in Q4 which could lead to that scenario anyway.