Stock Rally, looking good! How do we keep it going?

By: Profit Confidential

The featured index that provided extra gas for the most recent stock rally was the Daw Jones Transportation Average and it did the same in the face of higher oil prices. This confirmation was excellent and it was recovered from February which was necessary in order to keep the stock exchange going. The Daw Jones Transportation Average’s technical picture still appears great and stable despite some investors’ views are pretty ‘old school’. I do keep following it for the confirmation of main stock market trends and regular ups and downs in the market. ProfitConfidential

The current stock rally will be based on events; it is appearing to be an event-driven one since we are now on the cusp of new earnings with the inception of the new financial year. In the first quarter, the investors are already expecting good returns and the stock market has already places its bets. So there are reports which suggest that the market’s going to be pretty stable and decent benefits. Corporate visibility is very important and this time it will be of much importance since expectations from the corporate world are going to make or break this year’s stock rally.

After the first quarter earning season is over, I do expect some sort of correction in the stock rally. Correction, just like revisiting all stocks and price corrections et cetera. It will be very unusual to see no price correction after the stock market is appreciated much in a short period of time. The only major mechanism to deal with price corrections would be much appreciated and improved economic news. If we get much better economic news and employment growth opportunities, then this year’s stock rally will boom with much fervor and excitement. On similar platforms, the investors’ sentiments also get strong enough since they’ll have sufficient income.

I’m amazed at the specific stock rally in large capital technology shares. There are loads of big, brand-name companies which have made their mark in the stock market like Microsoft Corporation, Intel Corporation, Apple Inc., Cisco Systems which have been stock market power houses since the beginning of the year. The technology has sort of ruled the stock market until now. Off lately, we’ve had very solid price strength in large capital companies. Like you know, I mostly prefer large-cap companies for investment, if you’re a regular reader here. They come with an added advantage which is not in all companies or even other companies than large cap ones are pretty dubious considering the investment returns and their rapport with the investors.

The Federal Reserve is more or less responsible for orchestrating this year’s stock rally. Monetary returns, low interest rates are all the heading features of today’s stock market. And they have been considerably responsible to change the investors’ relations and sentiments towards the companies listed on stock market.

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