The independent market researcher is building his bullish case by zeroing in on the Citi Economic Surprise Index, which is built to measure optimism in the economy.
In the week ending Friday, the index flipped into positive after spending more than 100 days in negative territory. Hickey contends the move suggests investors are feeling more confident about the economy's direction, so there's a good chance stocks will rip higher. "There are five prior periods that we're talking about. One, three and six months later, the S&P was higher four out of five times," Hickey told CNBC's "
" on Friday. "When we looked at when these prior streaks have ended and expectations have been ratcheted down enough, the market actually did quite well going forward."When the index went negative for at least 100 days, he reports the S&P 500's median gains were 4% over the next month, 6% three months later and 8.5% six months later.
TradingNation Yes, after a ten year bull run, I'm sure the market is ready to take off like a rocket ship. This is sarcasm, by the way.
TradingNation Lovely shot ..
TradingNation GiddyUp 🏇 BULLISH Impulse wave$ motha of all short$ squeezed 📈📈📈 It's called🧗♂️climbing Trump Wall of worry, %s higher SPX3K 🎯 🤗 Protect gains near end of Sept as probable more Chinese lies after 30yrs Trade Tarriffs against USA by CFR Globalist KabukiWarriors 🤔
TradingNation For those new to investing be aware that : 1) there is a strong bias towards rosey forecasts from the investment industry, and 2) NO ONE can accurately predict the direction of the stock market (ask Warren Buffett or the Founder of Vanguard - Bogle -should you doubt this point)
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TradingNation Man, the media is all over on this story. I am feeling pretty good, but have shuffled some things around just in case.
TradingNation MarketWatch says the sky is falling.
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TradingNation Yup, LETS GO!