November 25, 2012
Weekly Market Outlook
By Keith Schneider
The Stock Market finally shook off its election induced hangover this week, but not before cleaning out the last of the diehard bulls. This stealth rally gathered a huge head of steam last Friday while most of the nation was out shopping or sleeping off a tryptophan induced turkey coma. Come this Monday, many market participants will find that the train has left the station without them and that means that this rally might just be getting underway after a short digestion period.
The classic technical pattern on November 16 in AAPL, the world's bell weather stock, was the tell. Culminating a 30% drop since September to lows not seen since March, AAPL closed near the highs of the day on massive volume and was a picture perfect reversal pattern. By the end of this week AAPL closed at 571 or almost up 13% from its intraday lows set from the prior week.
The truce between Gaza and Israel helped calm the markets and with the Republicans boxed in on Capitol Hill, we surmise a deal on fiscal policy is coming. Our forecast is that the fiscal storm brewing has been downgraded to a light drizzle and the fiscal cliff is really just a ledge. With the market regaining its footing, a war averted, and things looking better on Capitol Hill, President Obama is a happy camper for good reason.
Check this week’s video to see where this rally is headed next.
Every week you'll gain actionable insight with:
