The Dow Jones Industrial Average has just hit 14,800 on Wednesday for a new all-time high. Call it 14,800.47 after a gain of 127.01 points or 0.87%. The S&P 500 Index just hit a new high of 1,586 as well, and we can say that this also implies that 1,600 is almost certain for the S&P 500 now. We have said over and over that this stock market wants to keep rising. The recessions of Europe are just not strong enough as of yet that they are holding the rest of the world back, and the open floodgates of the Japanese commitment to spend close to $75 billion per month to buy assets is continuing yet more of a push.
It seems to be a safe assumption that the DJIA is probably destined to hit a new all-time high of 15,000 any day now. We recently gave a list of ten serious things that could derail the bull market. What we would point out is that at least three of those ten concerns have already come to pass, and arguably more. And the market keeps rising and stocks are again hitting new all-time highs. What does that tell you? We have lived under one mantra when it comes to investing. This is beyond buy low and sell high. If you think that the market is going to sell off based upon fair predetermined facts and it does not sell off, then the market is probably heading higher. The inverse of this is true as well.
It has almost becoming unsurprising that we found as many as 19 stocks where analysts see 50% to 100% upside in the stocks.
We outlined a blueprint for the bull market to continue in April and that has been spot on, with one exception. Our original DJIA target price of 14,590 is now 200 points old. We have to raise our price target, but the reality is that we cannot really do that right in the midst of the buying frenzy. We need a week for the dust to settle. Arguably that could have been last week, but now maybe it will be next week.
Merrill Lynch also gave a fresh list of stocks that will beat earnings estimates during this earnings season. Deutsche Bank also gave a list of stocks to buy even if you missed the bull market so far.
For the DJIA to hit 15,000 soon, you just need to understand that this is only another 1.35% for the market to rally. The S&P only needs to rise another 0.8% to hit 1,600 now. In today’s market, that could come from just one data set.
Stay tuned.
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