There are conflicting signs in the market. The news is very bearish on the Euro with Greece in the headlines nearly every day. A drop in Euro would indicate that a rally in the US Dollar which is bearish for commodities. But looking at commodity producers (e.g. copper), the charts are indicating a strong underlying buying pattern while the stocks are in a base (pretty much the same across the board for multiple stocks). Just looking at those charts, I would speculate that a big rally in commodity stocks is expected and some big players are loading up on the stocks. Yet a rising dollar is bearish for commodity stocks. This market is getting confusing. Yet I still think I am right about the 5th wave being under way. That would set the near term (<6 wk) target for the DOW to reach 11,500-11,700 range with 13,000 being a distinct possibility. I still like Chipotle (CMG) and have a price target of 140.00. Assurant (AIZ) has overcome resistance at 32.75 and started moving up. I would expect a price target of mid 40s if the market does not peak in the meantime. CELG is showing a short term peak, yet the long term trend seems to be intact at the moment. I have a price target of 70 on CELG with 75 a possibility. There were big rallies in overseas markets, and I expect that to carry into the US markets today.
(Please note that I own all the stocks whose tickers I mentioned above).
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