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Doubts Grow Over Stock Market’s Trump-Inspired Surge
I too am thinking a nearterm pullback is brewing. However, reported corporate earnings are improving along with full year forward estimates being raised. I have read of some being in the low $130's for the 500 Index. Should this come to be then the S&P 500 Index perhaps from an earnings perspective is not overvalued although all the others feeds in my market barometer reflect overbought conditions. Currently, about 80% of the stocks within the Index are above their 200 day moving average indicating this is a broad based rally not driven by a rally of few but many stocks. With this in thought stocks can and most likely will move higher through the year. At the beginning of the year I targeted the Index to reach 2475 at some point during the year. I am still with this thought and if it should surpass this mark ... Well, that's even better.
I have ample cash to do some equity buying should a nearterm stock market pullback come. Currently, I rate the market as a hold due to TTM earnings valuation. Forward estimates are just that ... estimates ... and, they usually get trimmed.
I watched the market trade down much of the day Friday; but, in its last minute of trading it closed up! Go figure! It takes big money to do that! So, it looks as though, for now, corporate America is backing Trump.
Comments
I too am thinking a nearterm pullback is brewing. However, reported corporate earnings are improving along with full year forward estimates being raised. I have read of some being in the low $130's for the 500 Index. Should this come to be then the S&P 500 Index perhaps from an earnings perspective is not overvalued although all the others feeds in my market barometer reflect overbought conditions. Currently, about 80% of the stocks within the Index are above their 200 day moving average indicating this is a broad based rally not driven by a rally of few but many stocks. With this in thought stocks can and most likely will move higher through the year. At the beginning of the year I targeted the Index to reach 2475 at some point during the year. I am still with this thought and if it should surpass this mark ... Well, that's even better.
I have ample cash to do some equity buying should a nearterm stock market pullback come. Currently, I rate the market as a hold due to TTM earnings valuation. Forward estimates are just that ... estimates ... and, they usually get trimmed.
I watched the market trade down much of the day Friday; but, in its last minute of trading it closed up! Go figure! It takes big money to do that! So, it looks as though, for now, corporate America is backing Trump.