Will March carry the tradition of making new HIGHS ?

Indices are on a roll for multiple reasons.

-World economies have seen their lowest point known a trough, & is on its way towards normalized growth.

-Numbers in US are simply " better than expected" on a continuous basis.

-European economy is on the mend also.

-India & China are trying to loosen up credit for growth.

-Inflation is peaking.

The only monkey wrench is, higher Oil prices, which is having an impact in inflation. Household budget is being impacted.

Oil, like any other commodity, may go further UP. There is increase in gasoline usage in developing economies like China, India.....

Europeans are paying very high Gasoline prices for a long time & have adjusted to this reality of $8 to $10 per US Gallon. US is in the process of paying higher gasoline prices. Canadian prices are much higher than US, currently @ around $1.30 per litre for Regular...equivalent to $4.91 for US gallon.

I do not see Gasoline in US having much impact to retail or restaurant spending.

Improving economies of the world should carry this market to higher ground & new HIGHS by March of next year.

On March 24th, 2000 S&P 500 intraday high was 1552.87......

On March 16th, 2012 S&P 500 intraday high was 1405.88.....

SO...after 12 years we are 146.99 lower.....there is another 10.46% left to match previous high......

I have a strong feeling that by March 2013...we should be @ new all-time highs in S&P 500......

Stock market goes in a momentum based uptrend, nobody should be surprised @ 2012 strength so far. I expect this strength to gather more momentum from here till end of 2013......

YES.... there will be periodic pullbacks in indices & many sectors along the way..as we witnessed in Transports, Base Metals, Ag & Gold sectors already...even Semis were down......

BUT..most of these sectors keep rotating to higher grounds.....

This market has established clear uptrend by taking out many resistance along the way & more to follow.....

Conviction & Patience are key ingredient to making serious money. Some may be feeling left out with their picks, but if you have done your homework / due diligence, you should participate in this "mother of all rallies"

This is a multi-year uptrend, only way to participate is to stay put & reap the reward of a lifetime.

Good luck with your OWN market analysis & your OWN picks.

BLOG does NOT give buy or sell.

Saleem