- US stocks have gone too high and fair value on the S&P 500 was around 1880.
- An overdue sell off or correction in the US is likely over the next few weeks.
- Janet Yellen wants the QE experiment to work and won’t raise rates until the US economy and stock market can take it.
Hold your breath and get ready for a challenging week on the stock market. A Wall Street finish with the S&P 500 breaching its 200-day moving average is not the kind of finish a forever-optimist really wanted to see.
After Lance Lai, my TV chartist, beat me at tennis on the weekend, he looked at the charts and said get prepared for some selling!
Thankfully, I’m not always optimistic, despite what some may say of me. I’ve been sweating on the Yanks embracing reality, and the US going through an overdue sell off was high on my wish list.