Key Words: Why ‘godfather’ of chart analysis says it’s hard to curb his stock-market enthusiasm
‘I am so bullish, I have to sit down and calm down.’
Those were the comments of Ralph Acampora, director of technical research for Altaira Capital Partners, on Thursday in an interview with CNBC.
The remarks from the prominent market technician, who is affectionately known around the world as the “godfather of technical analysis,” came as the Dow Jones Industrial Average broke above 25,000, marking a fresh record in 2018, and marching to its fastest 1,000-point rally to a round-number milestone in history.
The record-setting climb for the benchmark followed a record of 71 closing peaks in a single calendar year in 2017, suggesting that in its ninth year, the bull market continues apace. Thursday’s trade also saw the S&P 500 index SPX, +0.40% the Nasdaq Composite Index SPX, +0.40% , the small-cap focused Russell 2000 RUT, +0.20% and the Dow Jones Transportation Average DJT, +0.31% finish at records. See:MarketWatch’s market snapshot
Still, despite the new heights for assets considered risky, Acampora said he sees the 121-year old Dow touching close to 29,000 in 2018. (President Donald Trump, a constant Dow watcher, on Thursday also suggested that he was eyeing 30,000 for the average.)
A healthy “rotation” from technology stocks to energy names and, recently, financial companies, as crude-oil prices CLG8, -1.08% retake $60-a-barrel levels that have’t been seen in years, have fostered Acampora’s optimism that higher highs can be taken out in coming months.
Of course, Acampora isn’t always right, but he was accurately bullish in 2017, telling MarketWatch during an interview that the market could add to its gains, as long as technology shares, which were under pressure at the time, didn’t “roll over.”
The market technician’s enthusiasm echoes another legend, David Tepper, who also on CNBC on Thursday said he thinks that stocks aren’t overvalued and foresees a further climb for Wall Street, despite what has been a blistering year, marked by repeated records and some nervousness that it could all end abruptly.
Tepper, the founder of Appaloosa Management, said recent tax-cut legislation signed by Trump could help meaningfully propel corporate earnings.
Check out Acampora’s CNBC interview below: