This bull market began in March and has performed in gorgeous fashion. Don’t believe me. Let the numbers do the talking. NASDAQ was trading around 1250 on March 12th. It never really came close totesting the lows made last October. This doesn’t mean that those lows will never be tested again. That can happen. It�s just not going to happen right now or in the foreseeable future. We are in abull market that is likely to last through the next national election. It�s a pocket of bullishness within a bearish macro environment.
The current bull market is cyclical in nature. The current rally is far different then the bear market rallies of the post bubble breakdown. I hate breakdowns when they are happening but in reality breakdowns beget breakthroughs. Another way of saying it is that markets cycle. So do individual stocks. Today is July 12th. March 12th was merely 4 months ago. Today NASDAQ trades at 1733. The swing over the last 4 months produced a 483 point gain. That amounts to a gain of roughly 38%. Not bad for a measly 4 months. If that doesn’t indicate bullishness then may I ask what does?
So granted the current market is bullish. The bear market is over. This mini bull market is 4 months old and will likely be the most powerful cyclical bull till the final one turns the secular environment around. That means new all time highs for the market as a whole. That level achieved in the winter of 2000 was the climax of the old secular bull that began in 1982.
All that is happening right now is a long term adjustment after many months of severe pessimism that created an atmosphere ripe with fear, complacency and cynicism. If one is cynical about anything then nothing is possible. Cynicism negates possibility. Take cynicism and complacency and place those two ways of being in the garbage. The world is filled with possibility. There are many worlds that make up the big picture. The stock market is a world that is chock full of possibility. It is entirely possible to utilize the stock market for financial gain. Stocks are nothing more then trading vehicles. You can hold a stock for a day or keep it for the rest of your life and pass it down to your heirs. It is all a matter of choice.
The equities market forms capital. It�s where the action is relative to capitalism. It is where the opportunities are for gain and sometimes loss. Today the market offers more possibility for gain then at any time in the last five years. It�s about time.
Time is on your side. All you have is time. You are never without time. You can never lose it. Time always is and always will be. Time certainly affects the rhythm of the market. It is vital to be in sync with that pulse so that you could better see where the possibilities for gain are and then take action. It is necessary to act in order to benefit. Sitting on the sidelines may fascinate for a while but that is not where the game is played. The game is played on the field not in the stands. The stock market is a great enabler. It enables you to make money so that you can actualize the dreams you have in life, like educating your kids. That is important to most parents. The stock market provides vehicles that can enable you to make the necessary money so that you could send your kids to a great school.
The trading vehicles that comprise the market will provide you with solid chances for gain and loss. It is vital to control the risk when entering a place of risk. Risk is the best four letter word in the dictionary. America is great because it provides the freedom to take risk. Its all about the ability to take and manage risk so that you can upgrade your life. Every move we make involves levels of risk. The purpose of getting involved in the stock market is to make money. That’s all.
The current market is gorgeous. So many stocks trading in a healthy manner widens the opportunity. Excellent trading patterns that are extended after a recent break out ought to be bought on pullbacks. Beware of stocks that are mature in their advance. I just bought some MSFT the other day because it appeared to have altered the intermediate to long term trend. MSFT has been basing for quite some time now and that has resulted in lagging the overall market trend. This year so far MSFT is up just 6% while NASDAQ shows a gain of close to 30%. Well MSFT is expressing hints of trading out of its base and the laggard could very well get into gear. That is just one of many stocks that are clearly pointing north.
Summer rally is upon us. Why can’t the market challenge levels not entirely expected sooner rather then later. If the summer rally persists then NASDAQ has the potential to challenge 2000 very soon. It�s merely a hint of where it will likely end at the top of this current cyclical bull. I don’t believe it graces 3000 but does come close. That is more then 50% away so opportunity does indeed present itself. After all what alternatives do you have right now? There is nothing available right now on the planet that could provide you with the potential gains over the next year then equities. It is where the positive action is right now. cyclical bull till the final one turns the secular environment around. That means new all time highs for the market as a whole. That level achieved in the winter of 2000 was the climax of the old secular bull that began in 1982. All that is happening right now is a long term adjustment after many months of severe pessimism that created an atmosphere ripe with fear, complacency and cynicism. If one is cynical about anything then nothing is possible. Cynicism negates possibility. Take cynicism and complacency and place those two ways of being in the garbage. The world is filled with possibility. There are many worlds that make up the big picture. The stock market is a world that is chock full of possibility. It is entirely possible to utilize the stock market for financial gain. Stocks are nothing more then trading vehicles. You can hold a stock for a day or keep it for the rest of your life and pass it down to your heirs. It is all a matter of choice. The equities market forms capital. Its where the action is relative to capitalism. It is where the opportunities are for gain and sometimes loss. Today the market offers more possibility for gain then at any time in the last five years. Its about time. Time is on your side. All you have is time. You are never without time. You can never lose it. Time always is and always will be. Time certainly affects the rhythm of the market. It is vital to be in sync with that pulse so that you could better see where the possibilities for gain are and then take action. It is necessary to act in order to benefit. Sitting on the sidelines may fascinate for a while but that is not where the game is played. The game is played on the field not in the stands. The stock market is a great enabler. It enables you to make money so that you can actualize the dreams you have in life. Educating your kids. That is important to most parents. The stock market provides vehicles that can enable you to make the necessary money so that you could send your kids to a great school. The trading vehicles that comprise the market will provide you with solid chances for gain and loss. It is vital to control the risk when entering a place of risk. Risk is the best four letter word in the dictionary. America is great because it provides the freedom to take risk. Its all about the ability to take and manage risk so that you can upgrade your life. Every move we make involves levels of risk. The purpose of getting involved in the stock market is to make money. That’s all. The current market is gorgeous. So many stocks trading in a healthy manner widens the opportunity. Excellent trading patterns that are extended after a recent break out ought to be bought on pullbacks. Beware of stocks that are mature in their advance . I just bought some MSFT the other day cause it appeared to have altered the intermediate to long term trend. MSFT has been basing for quite some time now and that has resulted in lagging the overall market trend. This year so far MSFT is up just 6% while NASDAQ shows a gain of close to 30%. Well MSFT is expressing hints of trading out of its base and the laggard could very well get into gear. That is just one of many stocks that are clearly pointing north. Summer rally is upon us. Why can’t the market challenge levels not entirely expected sooner rather then later. If the summer rally persists then NASDAQ has the potential to challenge 2000 very soon. Its merely a hint of where it will likely end at the top of this current cyclical bull. I don’t believe it graces 3000 but does come close. That is more then 50% away so opportunity does indeed present itself. After all what alternatives do you have right now? There is nothing available right now on the planet that could provide you with the potential gains over the next year then equities. It is where the positive action is right now.
Disclaimer: Jack Rothstein currently manages over fifty million in assets as well as two hedge funds, and periodically publishes columns expressing his personal views regarding particular securities; securities market conditions, and personal and institutional investing in general, as well as related subjects. Mr. Rothstein’s columns are not intended to constitute investment advice or a recommendation to buy, sell, or hold any security.
