Goldman Sachs has been having a bad time of it all. Recall before Brexit they warned how many jobs would leave London if the vote went the way we now know it did.
Their stock jumped last week owing to some so-called good news in the economy and the financials. Now they've sent out one of their technical water boys to give us all the good news about just how far this recent equity rally can run. Most likely someone here got a call from Fed Chair Yellen over the weekend urging the big Wall Street firm to toss out some positive stuff. the connection between the Fed and Sachs is tighter than the skin on the face of a well known female politician after one of her many facelifts.
After a post-Brexit misstep, the stock market has regained its footing and roared past all-time highs in the past week.
The strength has been broad-based, and it appears to Sheba Jafari, a technical analyst at Goldman Sachs, that this upward trend in markets could continue for a long time.
"If this is truly a 3rd wave from June, it should really move past 2,191 and eventually reach a 1.618 target at ~2,263," Jafari wrote in a note to clients Sunday.
Jafari, who calls the recent rally "textbook," is using a method of technical analysis that posits that market behavior is orderly and moves in "waves," thus it can be tracked as long as you can read the signals the market is telling you.
Based on these signals, Jafari believes that not only is there a short-term uptick of at least 100 points in the S&P based on Friday's closing price, but in the long run there is even more good news for stock investors. "Narrowing in even further, the move since February is likely to be wave (5) in a sequence that starting in 2010," Jafari wrote. "As such, the minimum target for wave (5)/III is 2,172 (now effectively satisfied). An extended target goes out to 2,394-2,452."
businessinsider.com/goldman-textbook-rally-in-stocks-2016-7?
For the record here's a link to a Morgan Stanley piece about too bullish everyone is. As they say, you pay your money and take your choice.
businessinsider.com/morgan-stanleys-global-growth-forecasts-2016-7?
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