S&Ps take out high

After being range-bound between 1550 and 1575, the S&P E-mini finally broke through, setting an all-time high of 1586.75. “This market completely ignores bad news,” says Larry Levin, president of Secrets of Traders. He says that the Federal Reserve rate cuts were a significant confidence builder and that for now, inflation does not seem like a big deal. “People like to hear that stuff and they are not afraid to buy the stock market,” he says, adding that people simply don’t want to miss out. “Every time this market comes down, people jump in, whether it’s fund managers or individual investors.” He expects the S&Ps to finish November strong, near the top of his 1560 to 1620 range.

“I think we are going to continue higher, even after the key reversal (on Oct. 11),” says Robert Fuhrmann, analyst at My Futures Online. He says that the government data is more supportive than anticipated, and that because earnings expectations are low, they will be exceeded. He expects investors to move capital out of commodities such as gold and grains and into the stock market, at least in the short term. “Retail traders tend to be a bit more bearish and tend to be wrong, so with their negative view on the market, we are posed to see a short squeeze and the market to run higher,” he says. “I don’t think the market is going to run away, but it will grind higher with volatility and great day-trading opportunities.”

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