After the Dow Jones industrial average hit 25,000 on Thursday, the so-called godfather of technical analysis, Ralph Acampora, told CNBC he thinks the blue-chip index can soar another 3,000 points this year.
His near-term target is 25,900, which he thinks will be hit “very easily,” and his secondary target for the year is 28,700.
“I am so bullish I have to sit down and calm down,” the director of technical research for Altaira Capital Partners said in an interview with “Closing Bell.”
And it’s not just because of the market action over the last few days, Acampora said. It is because of the market rotation that started occurring in the second half of 2017.
While technology dominated the year, energy and financials rallied in the second half, he explained. Plus consumer discretionary and consumer staples began playing a game of catch-up.
“This rotation is very powerful. … We have a heck of a lot more left,” he said.
Acampora said stocks that haven’t performed in 2017, such as IBM and Exxon Mobil, will start to take over some of the leadership.
In fact, he’d start making positions in Exxon and Halliburton, which he said have a lot more room to run. He also likes Bank of America to buy and put away for 5 years.
source : CNBC