Ralph Acampora on Why the Bull Market Will Forge Much Higher
Speaking to CNBC’s Maria Bartiromo yesterday, Altaira Limited’s Senior Managing Director and long-time stock market technician and guru Ralph Acampora explained why he was so bullish on the prospects for equities. Acampora said we could see the Dow at 20,000 in the year 2017.
Acampora stated that the U. S. is on the threshold of becoming energy independent. “Stop for a second and think about what that means…that means the money we save on importing oil and the revenues we’re going to make on exporting energy is going to be magnanimous…and if that happens, and I know it will happen, all the concerns about budget deficits and things like that may get muted, and in a big way, and the market looks ahead and it looks at that above and beyond all the rhetoric we hear about the current problems,” Acampora added.
Acampora further stated the market might not hit 20,000 for another 6 years, but we will be the superpower that we are.
Bartiromo questioned Acampora on points he raised in a previous interview regarding the stages a bull market goes through and asked him to comment on what phase this bull market is in. Acampora said we are definitely not in phase 3, the speculative and complacency phase, because he sees no speculation whatsoever.
Acampora said the impressive thing about this market has been the sector rotation. Technology stocks which have been dormant are really starting to take over, he added.
Acampora said it looks like we are on the cusp of the market shifting from phase 1 (disbelief) to phase 2 (trust). “I love it when people keep talking this market down, and we haven’t even talked about the public being all in cash and money markets and Treasuries,” Acampora said. “Maria this has got a long way to go,” he reiterated.
Acampora commented on the volume on the NYSE and the participation in the market by professionals and the public. “The volume, if you’re lucky on the NYSE, runs about 600 to 700 million shares a day…in the good old days it was 1.5 billion shares as day, and that other 50% was definitely public and they’re not here,” Acampora stated.
Bartiromo asked what group (sector) Acampora would buy here, to which he replied, “technology…semiconductors…technically they’re all breaking out, they look fabulous.”
Back in late December, Acampora correctly predicted the market would rocket higher following a fiscal cliff deal [link].