Homer Simpson of “The Simpsons” TV show: “Beer. Now there’s a temporary solution!”
Perhaps I should have waited until Monday to write this blog. Today, the world awaits to hear the “solution” for the EU debt crises from its leaders. Depending on the outcome of this meeting, markets will either sink like a stone out of disappointment, or rally to the upside and hopefully break the 200 day MA and 1260 resistance level I’ve noted in prior posts. So, at this point it would appear that stock market investing is more akin to playing roulette. Win big, lose big. Place your bets. I will admit that I am long the market. My projected target for the S&P 500 remains at 1300-1350. Seasonal factors, and a few sentiment indicators look favorable, but it’s all up to the gang in Europe to push the button.
A recent roundtable discussion conducted by the Globe & Mail asked Paul Atkinson, head of North American equities at Aberdeen Asset Management, Brooke Thackray, research analyst at JovInvestment Management, and myself to debate the issue of where the market may end up by year-end. Each of us has a unique perspective from our respective disciplines (Paul- fundamental analysis, Brooke- Seasonality and technical analysis, Keith – technical analysis). Here’s the link: