Friends,
I’ll bet Dr. Bernanke would like to rethink the interest rate policy he rolled out last week, not to mention his gloomy outlook of the economy and employment. Today we got a blowout jobs number with the non-farm payroll number coming in at 243,000 new jobs. Guestimates were for 75,000 to 100,000 new jobs having been created in January. Along with that fantastic news came a better than expected ISM non-manufacturing index number. I know negativity has ruled for quite a long time now, but the facts are what they are. The domestic economy has been getting better. The employment picture is getting better. The bears have not been able to deal with the facts and, for the time being are getting run over. Sure, something in Europe can blow up next week or Israel could take target practice on Iran, but the fact remains that here at home things are getting better. Does that mean things are good? No, not necessarily. It really depends on your point of view. One of my favorite artists once sang, there are winners and losers and don’t get caught on the wrong side of that line. But to ignore the facts just doesn’t work when it comes to investing. We are certainly not raving bulls, but we acknowledge when things are changing and position accordingly.
As for the markets, the Dow Jones Industrial Average just closed at a 3 ½ year high. I’ll pause a moment while you consider that. The NASDAQ is at its highest point in 11 years. Once again, I will take a moment to let that sink in……………………..
For the day, the Dow Jones Industrial Average was up 156 points to close at 12,862. The S&P 500 had a very nice 19 point move to the upside to close at 1344. We are now challenging the 1350 area that has formed a formidable resistance. It will be important to get through that in a comfortable manner before we can verify a change in pattern. Bulls do not want to see the S&P fail at this area, as it has several times in the recent past. Gold gave back some of its recent gains closing down $31 and oil was up for the day $1.37.
As we go into Super Bowl weekend, just consider that after all the gloom and doom forecasts that we have been enduring over the past couple of years, this wonderful, resilient country of ours continues to fight back. Whether you believe that Central Banks and Politicians hurt or help the situation (I think I know where most of you stand on that), the fact remains that we plow through it all and keep making America great. I think I need to bring back a picture we used last year.
Have a nice weekend everyone and enjoy the Super Bowl.
