ISA Account’s 64.4% Growth Shows Stock Market Boom is on the Way - Part 2 of 2
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Stock Market, Investment Fund, Wealth Building on 11th December, 2009.
Tags: investment opportunity, isa, isa account, liquid millionaire, nasdaq composite, profits, stock market boom.
How ISA Account’s Growth is Proof of Up and Coming Stock Market Boom
In my last blog I told you how I’ve recently made returns of 64.4% on my ISA account.
I told you this information not to brag or boast but to highlight the incredible investment opportunity you are currently facing.
In my book, Liquid Millionaire, I highlight an investment opportunity of a lifetime. To remind you, because the market has not made any price progress for over 10 years, it’s probably due a move.
In my last blog I showed you a chart of the Nasdaq Composite (the market’s leading index) and how it has been moving sideways for the last decade.
In today’s blog I want to share more evidence of why I believe a stock market boom is imminent so that you can see how you too could be making profits of as much as 64.4% on your ISA account.
Bullish Signs from the Chip Sector
I want you to look at a weekly chart of an ETF (exchange traded fund). The stock ticker symbol is SMH and this ETF is simply a tracker stock for the chip (semiconductor) sector.
The reason I place a weighting on this ETF is because chips are the heart and soul of the Nasdaq. And normally in bull markets, they like to lead. And so when you see strength in this sector, it’s classed as bullish behaviour and great news for the market going forward.
Notice that this key ETF has made a bullish cup pattern (Point A) with handle (Point B) and is right now attempting to break out into higher ground (Point C).
This is good news because when chips break into new ground first, the Nasdaq Composite could be right behind them, and behind the Nasdaq will be the rest of the market.
Small Caps Firm Up
Next take a look at the S&P 600 on a weekly chart. This is the small cap index and its behaviour is important because in bull markets, small cap stocks are normally one of the leaders. That means just like the chip sector, they can help “pull” the rest of the market upwards. Recently small caps have been struggling but over the last week, they’ve really firmed up.
The S&P 600 has also formed a bullish cup (Point D) with handle (Point E). If it can break above its resistance at the 33o level (Point F), it could really take off –and in turn help drag the rest of the market with it.
Nasdaq Looks Ready to Break Through
To finish, I want to take another look at the Nasdaq Composite, but this time we’ll look at it on a weekly chart.
As you can see there is still a strong area of resistance (Point G) at the level that this important index is currently trading at. The good news is that over the last six weeks, the Nasdaq has attacked and chipped away at this area on ten separate occasions. And each time it makes an attack, the resistance automatically weakens. This means that right now, that area of resistance is getting weaker and weaker and weaker.
What’s also quite exciting is that during the last week the Nasdaq has moved up very close to it (Point H) and looks like it may be ready to finally break through –and this time stay above.
That means by the end of the year, the Nasdaq may have begun its next leg upwards (Point I).
And so when you start to piece all this information together, it tells you that the market is currently in great shape.
Now that is something to get excited about - especially when you are invested in the market’s best performing invest funds.
Find Out More
If you would like to find out more about how to be invested in the market’s best performing funds then please contact a member of my team for a chat.
Your friend,
Stephen Sutherland
The UK’s Leading Authority in ISA Trend Investing and Author of Liquid Millionaire
Please Note: As always, let me remind you that I am not a financial adviser and therefore not authorised to give advice on what investments to buy or sell.
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