US Markets

Ralph Acampora: I am so bullish I have to sit down and calm down

Key Points
  • Ralph Acampora, the godfather of technical analysis, has a near-term target on the Dow of 25,900 and secondary target for the year of 28,700.
  • His bullishness stems from the rotation in the stock market, which he said will continue.
  • However, strategist Jim Paulsen sees a significant correction this year.
Ralph Acampora: Here's why I'm so bullish
Ralph Acampora: Here's why I'm so bullish

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.

Closing Bell Exchange: Dow passes 25K
Closing Bell Exchange: Dow passes 25K

However, strategist Jim Paulsen said there's a correction in the cards this year.

Not only are investors optimistic, but Main Street is as well, with consumer and business confidence high.

"When it gets good on Main Street and everyone thinks the water is finally safe it often gets rough on Wall Street," the chief investment strategist at the Leuthold Group told "Closing Bell."

"Momentum might keep this going for a while, but I think we're setting ourselves up for a significant correction sometime this year."

— CNBC's Melody Myers contributed to this report.