The stocks tend to have soared above 2½ times to their lows in March 2009, and party appears to have long way still to go, according to Ralph Acampora, the director of the technical research located at Altaira Wealth Management.
The bull market would last ten to twenty years, Acampora informed. He said that they had momentum going their way as well as leadership, low inflation, market breadth and low rates of interest. He said that it does not get better from that.
Both Dow Jones Industrial Average and Standard and Poor’s 500 Index hit the record highs once again this Thursday, for S&P 500, 1,693.12 and for Dow, 15,589.40.
Acampora said that market had healthy structural sentiment. He said that he was talking about one secular market of bull that he firmly believed they were in. secular, as he said, means that it would last for one or two decade.
At start of the bull market, there is much doubt and the investors do stick quite largely to the stocks which are blue-chip, according to him. Also, he said that they had that from last four-and-a –half years.
In 2nd phase, the investors feel slightly more comfortable and they do become believers, said Acampora. Mid- and small-cap stocks are leading the way during this period and around 2 weeks back, that is why he got much excited as the mid- and small-cap indices of stock hit highest record, he said.
Acampora thinks that they are in part 2 that would last for quite some while and he was talking years.
Afterwards come the 3rd and the final phase. He said that sentiments do get speculative a lot, and the people become quite complacent. Also, he added they do get the market call at Saturday night, the time when they get hot tip through some cocktail party. That is, he said, when bubble comes and he didn’t see any, thankfully.
One tapering of the quantitative easing that is be Federal Reserve would not stop this trend, says Acampora.
Acampora said that Bernanke started the talks about taking the pedal off gas. He said, “It scared the heck out of global markets. We dropped 5.5 percent. Now, we’re up at new all-time highs. Forget about the tapering. It’s already been discounted by the market. We’re going up.”
Acampora says that fate of Dow Jones Industrial Average tends to be tied closely to Dow Jones Transportation Average.
When both of the averages hit latest closing highs and that they did in this Thursday, which confirms one primary market of bull, he said. Industrials did finish at 15,548.54 with the transports on Thursday at 6,579.05.
Lastly, he said that when they didn’t confirm, one does make some new high. Also, the other one does fail, according to him. Further, he said it sets you on guard thinking there might be some problem and from last 4 years, it is all up and also away.