The Dow Jones Industrial Average closed over 10,000 for the first time in a year.
Yesterday’s close was 10,015.86.
Of course, as fast as the number went up, the negativity rolled out, including reminders that the Dow itself is barely valid (true,) and 10,000 is just a number (also true.)
So let’s put it this way: When the goofy Dow components tanked below 6,550 – which is just a number – some of us were feeling a tad peevish. Is it all that terrible if we get a little happy when all the averages are up roughly 50%? Maybe, just to prove I’m not swayed by round numbers, I’ll start the party early, cheering for a close over Dow 9,999. Similar parties are being held for the S&P and the NASDAQ.
All the traders I follow believe we’ll close even higher by the end of the year. The biggest reason: Fund Managers who refused to participate in the first 3,000 point run are starting to look a little silly.
As you might have anticipated today, the markets opened down. Buyers held out for lower prices, under cover of strangely negative headlines. With the lows in place by 11:00a, volume accelerated and stocks worked their way positive through the afternoon, pushing higher in the closing hour.
I think we’re going to see a lot of this kind of thing during the last quarter of this year. Slow starts and fast finishes. There’s something on the order of three trillion dollars on the sidelines, and over 90% of retail investors missed the recovery, putting their money in bonds.
RECRUITER’S VIEW: The markets will power higher, money will come out of the woodwork, and companies will find resources to start taking action. I expect to be talking to a lot of confused people for the next three months. Headlines and stories will continue negative, and the markets will continue positive. Near and intermediate terms, market forces in equities will be following simple trading mechanics. For those who don’t follow these things closely, one fact will seem clear: Stocks will be on the improve, the value of pretty much everything we own will be higher, and the possibility of earning a living with a paying job will seem much more likely.
All pretty good attitudes, if you ask me.