? (Anchor) 00:00.070
joining us here at post nine today steve sosnick chief strategist at interactive brokers has a sixty five hundred year end target for the SP in twenty twenty six that's a curious number so good to have you
Steve Sosnick (Chief Strategist) 00:11.390
good to see you what what
? (Anchor) 00:12.270
what would lead us to that
Steve Sosnick (Chief Strategist) 00:13.870
a lot of a confluence of different factors first of all i'm an inherent contrarian so let me start with that and i i i i believe i'm kind of an outlier and and i'm in being a little lower but history i think is it points to caution number one second year presidential terms or
Steve Sosnick (Chief Strategist) 00:29.320
midterm elections however you want to slice we've only had two bear markets in the last fifteen years guess when they've happened second year presidential terms and i think very specifically as a long term options trader in february of twenty eighteen was walmageddon which was
Steve Sosnick (Chief Strategist) 00:43.310
truly scary but i think we have you know sort of everybody's on one side of the boat on this regard secondly new fed chairs tend to get tested in their first year or so it's just that that doesn't happen very often all these are low all these are low frequency events so it's
Steve Sosnick (Chief Strategist) 00:57.950
tough to draw too many patterns but just historically it it's it's the case bernanke took office in twenty eighteen really just around bombed again yellen had a pretty smooth time bernanke just in time for the financial crisis and and alan greenspan came in literally just before
Steve Sosnick (Chief Strategist) 01:13.710
like a month and a half before the stock market crash of eighty seven so the the track record there is just tricky it's i think because you get into this situation of excitement as sarah was just saying you know it's sort of dove dover dovishist kind of thing is where we are now
Steve Sosnick (Chief Strategist) 01:28.070
and so any any upset to that could cause some problems and then i think we're also just reassessing the the the the AI trade that's brought us so far where we are and i think the market is going through through that and that's not necessarily this is why i don't have like a
Steve Sosnick (Chief Strategist) 01:42.430
fifty five hundred or five thousand it's just more of a cautious number basically on the thought that OK these companies have have brought us so far so fast but they're also if there's any pullback in them it takes an awful lot of rotation to make up if they're if they're losing
Steve Sosnick (Chief Strategist) 01:56.870
ground or even just treading water you
? (Anchor) 01:58.350
think broadcom is a good example to point to
Steve Sosnick (Chief Strategist) 02:01.110
exactly
? (Anchor) 02:01.710
coming out of pretty positive earnings
Steve Sosnick (Chief Strategist) 02:03.430
well that's it what what could the only thing broadcom could have said that was better than what they said was that guidance tops the highest end of our estimate by any normal stretch of the imagination broadcom said everything they needed to say to get a stock to to do well
Steve Sosnick (Chief Strategist) 02:19.430
instead they you know instead they fellow you know double digits in two days
? (Anchor) 02:23.270
you've got a good take on i was waiting for the broadcom chart i'm not sure we'll get it a good take on pre market trading trends meaning traders who are looking to buy weak futures in the hopes of a rally at the open
Steve Sosnick (Chief Strategist) 02:36.590
absolutely you can almost set your watch by it now four AM is it just look at a chart four AM you see the futures jump i've been starting the term hit me yesterday after i wrote piece pluto rallies 'cause i thought of the movie animal house where like belushi goes running out of
Steve Sosnick (Chief Strategist) 02:50.470
the room and nobody follows him and and we've seen this a lot of times where there's this big run up into the open and we're seeing it today and nothing no there's no follow through doesn't mean it doesn't mean it's not going to happen and what it also means is it probably bodes
Steve Sosnick (Chief Strategist) 03:03.910
well for the santa claus rally because then you you don't have the institutional sellers you don't the the old dolls don't short adult tape applies so maybe they can get away with it more in in in the you know in the week between christmas and years but it's it's clearly a
Steve Sosnick (Chief Strategist) 03:17.550
pattern right now