Below is an edited version of what I posted back on January 16.
My prediction was S&P 2811 by June 15, 2019. It is at 2811 today. Who knows what the next three months hold, but I'm staying long until I get a sell signal.
Quote:
Originally Posted by highnote
I have been maintaining a stock market timing model for the past 5 or 10 years that was devised by Martin Zweig. Last week I got the biggest buy signal that the model gives. It also gave a couple smaller buy signals a week or so earlier.
Check back here in 6 months. I estimate that the SP will rise by at least 15% by June 15, 2019.
...
So I'm looking at a target for the SP of at least 2811 -- up 15% from December 26's close, but more likely 2931 based on the close of January 7, 2019.
The following indicator is why I am so bullish:
On January 7, the NYSE Advancing Stocks to Declining Stocks ratio over a 10 day period was greater than 2-1. That is a huge buy signal based on momentum. It has only happened twice since 1993. It happened in March of 2009 at the bottom of the financial crisis when interest rates dropped and the Fed started QE. It happened in July 2016 when everyone thought Hillary was a lock to win the presidency -- investors saw stability in that not much would change from the Obama presidency.
There was also another strong indicator on December 26, 2018 when the NYSE Advancing volume to declining volume ratio was greater than 9-1 -- it hit 24-1. It takes a lot of buying to get to that ratio. Money is flooding into the market.
...the market should do well over the next 6 months.
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