The Week Ahead: What's Missing From This Bull Market? |
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August 14, 2016 |
August 2016 Bond Updates
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he stock market spent most of the week consolidating its gains after the sharp rally in reaction to the July jobs report. Thursday's sharply higher close and very positive A/D numbers suggests that stocks are likely ready for another push to the upside as the S&P 500 challenges the 2200 level.
The new high in the major averages and leading action of the advance/decline lines has still not convinced everyone as Goldman Sachs advised their clients on August 1st to "avoid all stocks for the next three months". They are also sticking with their yearend target for the S&P 500 at 2100 which is 3.7% below current levels.
It has not been a good year for Goldman Sachs as on February 16th they advised selling gold short when the December contract was trading at $1209. As of last Thursday's close at $1350 it is up 11.6% since this recommendation. Their crude oil forecasts also seem to be out of sync as they turned bullish three weeks before it topped out in June. As they continue to lay off staff I hope they consider hiring some good technical analysts.
So what's missing from this bull market?
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View more at: http://www.forbes.com/sites/tomaspray/2016/08/13/the-week-ahead-whats-missing-from-this-bull-market/
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