The Unthinkable - R2K @ 2K

The Rus'2000 small cap broke the 1000 threshold level today. It has to be asked, is 2000 going to be hit in the current multi-year up cycle? With QE continuing the worlds central banks, there is little reason to assume the next thousand points won't arrive sooner than even the permabulls dare dream of.


R2K, weekly

R2K, monthly

SP'monthly6c, hyper-bullish outlook

Summary

Yes, I'm actually going to dare ask the question, is the Rus'2000 going to 2000? Why not? We're now in the fifth year of a rally that has taken the R2K from 341 to 1001 in about 50 months.

If the R2K can triple in 50 months, how about a double in the next 24-30 months?
--

The sp'monthly6c outlook/count remains something I increasingly like each day. If we can break into the 1800s this summer, it opens up the big 2k as early as this years end. My best guess is we'll see some chop later in the autumn - not least when Merkel of Germany gets the boot, with sp'2000 more likely in spring 2014..as a result.


Looking ahead

There isn't anything lined up for Tuesday, aside from the mid-sized POMO of around 3bn. That money should kick in late morning, and help to give the bulls another positive Tuesday close.

*I am looking to go long Oil/Silver sometime Tuesday morning.

Goodnight from London