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Mike Wilson Morgan Stanley sees a significant rotation in the US reserves and he sees one group that went out as the winner.
“It started with a low-quality action, and this is what we expect is a short squeeze,” said CNBC CEO “CNBC”Fast money“Monday. So, the last couple of days, although stocks acted better and it can take the index above. How high? 5900. So we are almost there.”
In the main indexes were Characteristic start of the week. A S&P 500 I scored approximately 1.8% and closed in 5767.57-approximately 6% below all times. Meanwhile, Chain jumped almost 600 points while Nasdaq Composite grew more than 2%.
“Wonderful seven “ He played a big role in the rally on Monday. Its participants include Apple. Nvidia. Meta -platform. Amazon. Alphabet, Microsoft and Tesla. Electric vehicles have registered its Best daily results from November.
But Wilson, who is also the US -General Strategist, offers a narrow window for profits. He focused on Monday a study on this idea.
“Strong seasonal things, lower rates and indicators of the revalrusted impulses support our call for a trading stock with ~ 5500,” he wrote. ‘Simply dollar And stabilization Mag 7 EPS (Profit for the share) can return capital to the US. Behind the tactical rally volatility It will probably be stored this year. “
And it does not rule out new lows in the year.
“Regardless of the rally we do not receive now, we believe that it probably disappears in May and June,” he added. “Then we will probably make a more durable low next year.”
According to Wilson, the market weakness is mainly related to the basics and technical technique.
“Nothing in common with the tariffs”
“The reason why the markets below the last three months have nothing to do with the tariffs,” Wilson said. “This is mainly due to the fact that the revenue reviews have turned over. The Fed stopped the reduction speed. You had tougher immigration executions. You have (government efficiency). All these things are negative.”
Wilson S&P 500 The goal at the end of the year is 6,500, which means almost 13% closing Monday.
“Could we make a new maximum in the second half of the year, because people are looking forward to 2026,” Wilson said.
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