As U.S. stocks plow toward the end of summer at record highs, Evercore ISI’s top chartist sees the good times continuing to roll.
“The search for the perfect wave begins with the S&P 500,” Rich Ross, the firm’s New York-based head of technical analysis, wrote in a research note in which he raised his short-term target for the index to 3,015 from 2,975. The move came less than a month after his last increase.
He uses the performance of several exchange-traded funds, each of which is trading at a record high, to underscore a “uniquely bullish” set of factors for stocks, including:
Strong momentum: MTUM US up 14% year-to-date
High quality: QUAL US up 7.9% this year
Low volatility: SMV US up 7% in 2018
A swell of value and size: VLUE US up 6% year-to-date SIZE US up 5.5% this year
“I would look to make tactical sales on an explosive move into 2,975-3,000 and then buy those sales back for a rip into the finish,” Ross says.
This article was provided by Bloomberg News.