The US and world markets look set for massive gains across 2013. With continued massive central bank printing..and further rounds already being touted, it now looks utterly implausible that we'll see anything other than sporadic 'minor multi-week' declines.
sp'monthly6 - scenarios
Summary
I could go on a long rant about what is currently happening - not least amongst the financial blogs/chartists, but really, whats the point?
The ONLY thing of importance is.....POMO.
That is really all that needs to be said.
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So long as the POMO money - 45bn, per month, EVERY month, is occurring, this market is not going to see a major multi-month decline.- as we saw in summers 2010 and 11.
Sure, we could fall, 2, 3, 5, even 10%, at some point this year, but how is that significant, if the broader upward trend continues?
Scenario outlook
Right now, 2013 is looking even better for the bulls than 2012 was. With the POMO $, algo-bots, and cheer leaders on clown finance TV, it looks like we'll close 2013 somewhere in the sp'1700s.
Broad rough scenario..
-rally into april/may 1550/1600
-minor 1-2 month decline..1400..perhaps 1350.
-rally all the way into year end, min' 1650, likely 1700s... possible 1800s.
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I sincerely 'wish' I could hope for major declines - as many are STILL touting, but really, I can't.
The bears have been nuked EVERY single year since the March 2009 lows, why would it end now? The old truth was indeed right all along. 'Don't fight the fed'.
If we do close the year in the sp'1700/1800s, what are the doomer bears going to say then?
*Just reflect for a moment on that question, but in 2010/11, when some were asking 'are 1400s, 1500s even possible, before the next collapse wave?'.
This market looks set for a continued rally to the moon. From what I hear, there are still some seats available on the rocket ship.
Want to get aboard?
Goodnight from London
