The Dow has now rallied 970 points in the last 12 trading days. ON August 28th we were down at 4-month low 14,649. As of this writing, Dec Dow is at 15,625. Bon Appetite.
Its any ones guess where the high will be in the stock indexes in the wake of the Fed’s decision to keep Quantitative Easing Alive. Every thing rallied across the board; All except the US dollar, which broke sharply.
I see no reason to stand in front of this freight train in the stock indexes. 16,000 is the next milestone ahead for the Dow and 1750 in the SPY (cash S&;P).
The Dec Gold spiked right up to 1350 on the initial bounce from the Fed’s announcement. As I write this; its trading at 1343.
Just a thought. Are we in the midst of doing as a Nation what Detroit did as a City? How long before the eventual day of reckoning.
While its good in the short term, one has to stop and pause and wonder what the end game truly is.
Its common knowledge that major news publications are very often completely out of synch with reality. They get bearish at the top; Scan back to March 2009. The Dow traded down to 6500 and the S&;P was at 666. For now, the rising tides will lift all boats; inflation fears will support all commodities from sugar to oil. The weak dollar will make our commodities more attractive to a world as their currencies became worth more dollars. right now the dollar index is sitting at a new 6-month low.
and they get bullish at the top;
This week: The Dow is at all-time highs. There is one potentially saving grace here; They qualified it with the “crash could happen all over again”. I still think its late in the day; but this is a day that might have 30 hours instead of 24.
For now, the punchbowl will be re-filled and the party continues. One only wonders when the next Fed chairman or chairperson will talk about “irrational exuberance” again. Remember how that turned out.
CER