Will Thomas Lee Be Right About the Year End Rally???

Will Thomas Lee Be Right About the Year End Rally???
December 16 05:44 2018

Industrial output in China rose 5.4% in November from a year earlier, a decrease from 5.9% year-over-year in October.  November’s figure missed economists’ median forecast for 5.9% growth. Also, retail sales in China rose 8.1% in November from a year earlier,slowing from an 8.6% gain in October and missing economists’ median forecast for 8.8% growth.

In Europe, the IHS Markit’s purchasing manager’s index, showed the German and French private sectors slowing sharply in November.

I’m Calling The Top In The DAX

Thomas Lee is a Managing Partner and the Head of Research at Fundstrat Global Advisors. He is an accomplished Wall Street strategist with over 25 years of experience in equity research, and has been top ranked by Institutional Investor every year since 1998.  But Thomas is probably most famous for holding on to his bitcoin $25k prediction by the end of 2018.  But the kicker is he was still saying $25k as late as October. 

Now he has a new prediction.  He thinks the equity markets can rally 10% by the end of the year. 

I personally like Thomas, but he thinks the S&P 500 can rally 200+ points.  When I look at the charts, I’m not see it.  On the daily chart, the momentum is still down and although the 2600 level held on Friday, price action is itching to test the February lows. 

The Russell 2000 represents small companies/businesses and is the first to move up at a bottom, but also the first to move down at a top.  Well the Russell 2000 not only tested the February lows, but also breached it already.

I suppose anything is possible, Trump could announce on Monday that the trade war is over.  The Feds could announce next week that they pausing rate hikes indefinitely.

            BUT IT WON’T HAPPEN

So if you had a $1 to bet, are you betting with Thomas or against Thomas, the Inquirer wants to know?

 Will We See A Santa Claus Rally This Year Rally 

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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