9/16/2014 – A strong up day with the Dow Jones up 101 points (+0.59%) and the Nasdaq up 34 points (+0.75%).
The market continues to trade in a tight trading range. Accumulating energy for either a significant breakdown or a breakout. In the meantime, some money managers believe today’s range bound market is due to Alibaba’s IPO this Friday.
“People are pruning their portfolio ahead of Alibaba to get rid of over weights in competitors to raise money for Alibaba,” said Art Cashin, director of floor operations at UBS. “The usual cat and mouse game is bigger than normal.”
Fair enough, but what about the fact that Alibaba’s anticipated valuation being out of sync with any sort of fundamental reality?
“There is some room for some volatility in the market over the next week when they realize that this period of zero rates is going to end,” he said. “But if you take a look at the big picture, rates are still so extraordinarily low that money will continue to flow into equities.” Standing by his prediction of 18,000 on the Dow Jones Industrial Average (Dow Jones Global Indexes: .DJI) by year end, Siegel again made his case for why the bull market still has legs.
In other words, buy everything in sight. Buy BABA and buy every stock under the sun. And the more speculative it is the better. Yet, maybe…..call me crazy…..just MAYBE this Alibaba IPO will mark the market top. Hmm, definitely something to think about.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. September 16th, 2014 InvestWithAlex.com
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