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• The Market Will Have a Good Run Over the Next Two Months (August 22, 10)
• RAIT Financial Trust - Revisited (August 14, 10)
• KKR Financial Holdings: A Value Investment Pick (August 06, 10)
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• Value Investing for Your Retirement - Next Pick
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• The Near Term Trend for Chinese Solar Stocks
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• Where Will Gold Price be Heading for 2010
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• Value Investing for Your Retirement - KFN
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• Super Star Pick of the Day - KFN (Aug 31, 09)
• Super Star Pick of the Day - GCI (Aug 27, 09)
• Super Star Pick of the Day - RTK (Aug 19, 09)
• Super Star Pick of the Day - AIG (Aug 08, 09)
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• Market Trend and Our Strategy to Pick Our Next Big Winners
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• Buying on Fear (Jul 07, 09)
• Hot Stock of the Day - FITB (May 11, 09)
• Hot Stock of the day - BAC (May 09, 09)
• Hot Stock of the Day - BRCD (May 08, 09)
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• Value Investing for Your Retirement - MTL (Feb 01, 09)
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• Don't Fall on the Trap of Short ETFs (Jan 03, 09)
• Once in a Century Financial Crisis Once in a Lifetime Investment Opportunity
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• How Long Will This US Stock Bear Market Last?
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• Buy Open Gap Down at Support (Aug 26, 08)

The Market

The Market Will Have a Good Run Over the Next Two Months

August 22, 2010

Traditionally, September is the worst month of the year for the market. Now it seems that this year will be no exception. All data points to a very weak US economy: Unemployment, housing, you name it.

On the other hand, US corporations had very strong earnings. Right now, S&P 500 companies only trade at forward PE = 12. Intel's (INTC) forward PE is at 9, Apple (AAPL) and Google (GOOG) are both at 14 while all predict that they see no slow-down in their future growth.

I don't think that the market will crash in the next two months. If you look at the S&P 500 chart, it is at a critical point now: the SPX closed at 1,071.59 Friday. Its low, 1,063.91, was very close to 1,050 strong support. This is giving a possible very bullish reverse H&S pattern if the index can change its direction at 1,050. That may happen next week.