Just now received this market update from Lange Financial Services. Fred and Rob at LFS have been extremely bullish, as published on this site, since the beginning of August 2010 and after reading this now, we see that they remain so.
As one can see today as well, the market opened down with little or no selling pressure ensuing, and is now pretty much flat on the day with the NASDAQ futures up 4.00. AAPL, what we condiser the number one growth stock in the world, is up over $2.00 to $346.50. More to come on AAPL in the near future.
LANGE FINANCIAL SERVICES- MARKET UPDATE
January 13, 2011 10:45am
The marketâ€™s action remains excellent and in line with our bullish expectations. The so called bullish contingent all seemed to be looking for a pullback over the past couple of months. They continue to await a 5-10% correction to either increase or establish positions, or looking for significant cracks in the market structure to trigger a substantial decline. The so called bulls repeatedly cite statistics that everyone is bullish and thus a significant decline is imminent. This type of market mentality has been wrong since we went bullish in August, 2010. As a result, many missed a major advance in equities. Selling pressure, even when the news seems negative, is modest, with buyers greeting any reaction. This type of action strongly suggests any decline will be short lived for the time being with higher prices likely over the short to intermediate term.
Fundamentally, the market is attractively priced. We expect earnings to reach or exceed $100 for the S&P 500 for 2011, and higher in 2012, aided by the strengthening economy. We believe that the market will reach or exceed its 2007 all-time high of about 1550 for the S&P 500 over the next 12 to 18 months. While there is a risk of a modest correction, we continue to advocate a fully invested position.