Mkts to trend higher on low expectations: Schaeffer's Invst

Ryan Detrick, the chief technical strategist at Schaeffer's Investment, believes global equity markets will continue their upward path on account of low expectations from the street.

In an interview to CNBC-TV18, Detrick says that people are becoming immune to the European crisis, and therefore markets can trend higher amongst the negativity. Below is an edited transcript of his interview with Menaka Doshi. Q: Are you expecting the Fed minutes to offer any hope on quantitative easing? A: There is definitely a good chance that that could be the case. In the US, we have had a lot of negative economic data all of a sudden, and so there is a chance that that could happen. If it is not in the minutes here, it is definitely if the US economy keeps going the way it is going, we could definitely see something later at the next Fed meeting. I think the door is open for some type of a statement there and likely to get a little bit of a spark in the market here. Q: We had an interesting June, what do you make of how July will turnout? A: As we came in June, there was extreme negative sentiment, almost end of the world predictions. So we had a really strong bounce in June. We still think this upward path is going higher and the main reason again is the expectations coming into this earning season. Extremely low expectations on the earnings front, rightfully so, but we just think there is still these end of the world scenarios that are out there. As Europe continues to be in trouble, many people are going to slowly become immune to that to a degree because this isn’t something new. Europe has dealing with these issues for two and a half years and still the US markets have done well. So we still think that this market can trend higher amongst all that negativity because the expectations are very low.