Why the S&P 500 will be much higher in 5 years?

Discussion in 'Trading' started by Duarte, Jan 5, 2013.

  1. Duarte

    Duarte

    I'll try to explain why the S&P 500 will be much higher in 5 years.

    (It's a guess, not a certainty.)



    Chart 1 - S & P500 index monthly candlestick chart between March 1964 and January 2013.



    My guess about what is happening is that the S & P 500 since 2000 is following the path between 1968 and 1983.

    This suggests that the S&P 500 may rise in the long term.



    [​IMG]





    Chart 2 - The following chart shows the Price ROC indicator between March 1964 and January 2013.



    [​IMG]



    The triple bottom pattern that the indicator did in 1994 was repeated between 2011 and 2012.

    After the triple bottom pattern in 1994, the S&P 500 rose during 5 years.

    This also suggests that the S&P 500 may rise in the long term.
     
  2. querry

    querry

    What is significant about this "pattern of 1994"?

    What does it mean to you?
     
  3. zdreg

    zdreg

    it will be much higher but adjusted for inflation lower.
     
  4. Rickards turned me on to that gold adjusted S&P.

    The rule is quite simple.

    Keep 10 to 20% of your S&P money in GLD.
     
  5. too bad , i bought VIXY , im betting it'll expolde.
     
  6. SPY gap needs to be filled.
     
  7. The question is when will it be filled: in days, weeks, months, etc?
     
  8. that I don't know , maybe in May, or sooner, if Israel strikes Iran, or something else.
     
  9. are they still doing that?
     
  10. Should you not replace IS by WAS?
     
    #10     Jan 5, 2013