A positive day with the Dow Jones up 56 points (0.15%) and the Nasdaq up 52 points (+0.35%)
It appears most investors and professional money managers are quite confused about what’s going on with the overall stock market.
Wasn’t it supposed to crash in November?
With some going as far as coming up with some outlandish theories or cause and effect propositions in an attempt to explain or predict what the stock market will do next.
Case and point, this beauty from ZeroHedge….
Will The Fed’s Coming Rate Cuts Lead To Higher Stock Prices? It Depends On Just One Thing
Will the US economy be in a recession in 2025, and by extension will Trump be president.
So, blame the Orange Man. And while at it why not blame Putin for this “crazy” market environment.
In reality, the stock market is doing exactly what it should be doing. At least according to our timing and mathematical work. In mid 2022 our mathematical calculations yielded the following projection.
“The stock market will bottom on October 10th, 2022 (+/- 2 trading days) and then run up to an all-time high, breaking above January 2022 top in 2023.”
The actual bottom arrived in the first 30 minutes of trading in October 13th and the rest, as they say, is history.
In our opinion or based on our calculations what the stock market will do next is crystal clear and quite interesting. And it has nothing to do with interest rates. Well, it kind of does or at least there has been a historic correlation.
Was the FED cutting or raising rates in 2000-2002 and 2007-2009. Cutting – right!!! Point being, just because the stock market has apparently survived this interest rate rising cycle, doesn’t mean the stocks are ready to run higher. In fact, quite the opposite is true.
Our mathematical and timing work confirms this conclusion. If you would like to find out exactly where and where the stock market tops out, and what happens next, please Click Here