Presenting Birinyi's Parabolic World... And Bi-Ruler
The last time Laszlo Birinyi came out with a bold market prediction was back in January 2011, when he forecast that the market would go to 2,854 by September 4, 2013 (more or less precisely to the dot). Many thought he was joking; he was not, and a month later he repeated the same forecast, leading to the advent of the Birinyi ruler. Needless to say, a year after his initial forecast the market was down. However, now that we have had yet another of the now traditional market blow off top moves on massive liquidity injected by central banks, the time to trot Birinyi back on the stage is upon us, and sure enough earlier today he made an appearance in Bloomberg where he proposed his latest forecast of 1,700 in the S&P by year end. Granted this is less aggressive than his previous forecast, which however still stands, so below we present visually the move that the market has to undergo in order to hit both of his targets, courtesy of John Lohman. Since we now have two waypoints on the road to exponential market nirvana, it is no longer a smooth single sloped, but rather a bi-sloping ramp, for which we can only assume one has to use a "bi-ruler" whatever that may be.
Presenting: the parabolic world according to Laszlo.