The biggest bull market ever ?

Many traders & investors are trying very hard to figure out this market.

Most involved are struggling with the most dreaded word "correction" & adjusting in anticipation.

Most involved were sure that 1500 area in S&P 500 will bring barrage of selling, all it did was to pause for ONE DAY & it went above 1500 with great ease.

S&P 500 has moved from 1398.11 to 1502.96 a gain of 104.85 or 7.5% in straight FIVE weeks.....

Dow has the-best January since 1989......that was 24 years ago......

The logical question is WHY all the strength in the market all of a sudden ?

We have looked @ technicals in the past for answers BUT this TAPE is bigger than any point & figure chart can tell us......

Most strong stocks have RSI approaching 80 & still looking very strong.

WHY WHY WHY

Answer may lie in the following "fundamental picture"

- In US politicians are co-operating for fiscal issues

-Fund flow from money market / bonds are pouring in equities

-Economic recovery is taking hold worldwide

-China had "soft landing" & pointing north

-India had "soft landing" & pointing north

-US had "soft landing" & pointing north

-Europe is coming out of its "slump" nicely & pointing north

- Word from Davos  "crisis is gone"

I am sure you are getting this "clear fundamental picture"

I do not recall since 1999 that so many things are pointing in the right "fundamental direction"

As we all know that last big bull was in 1998 to 2000......when S&P 500 was @ 912.83 on January 12,1998...but by March 24, 2000 it was sitting @ 1552.87....a jump of 640.04 or 70.12%..this was in anticipation of massive technology spending for Y2K...

Of course we all remember on March 6, 2009 were @ 666.79 & now 1502.96 a jump of 836.17 or 125.40%......this was all on HOPE to RESOLVE financial crisis.....

NOW we have real "turning UP of worldwide economy in place"

How far we will go NOW in this run "could be an investor bonanza"

First we should take out March 2000 high of 1552.87.......a 13 year old benchmark......

Based on historical strong bull market, we should easily add @ least 70% jump from hereon in next 3 years....IF this reading of tea leaf is close to mark then by end of 2015 S&P 500 should be @ 2555 area.....

Also by end of 2015 Nasdaq should be around 6299 area, this projection is based on 100% jump in next 3 years...for the record Nasdaq was @ 5078.66 on March 24,2000... currently we are @ 3149.71......

All this projection may sound "unbelievable" but TAPE may surprise all of us.....

SO ...fundamentals may be giving a better picture of great things to come.......

BLOG does NOT give buy or sell.

Saleem