Friends
What? We were just kidding-none of it matters today. We are beginning to get a somewhat schizophrenic market, aren’t we? Market gurus were crying “sell everything” yesterday, and lo and behold stocks rallied right back today to actually end mixed (Dow was up/S&P 500 was down) for the week. Let’s just take a little inventory, shall we. First of all, we have had a very ample advance over the past few months. A little pullback here would not be surprising and actually could be refreshing. We know how things that go straight up end up. Second, valuation is a bit more stretched than the past few years, but in the large scheme of things stocks are still not expensive. P/E ratios in the mid-teens are about midway between cheap and expensive. Third, though not robust, the economy is inching along in positive territory (most feel the negative GDP reported for the 4th quarter will be revised upward). Finally, the Fed is going to remain accommodative. Forget everyone freaking out the last two days about the Fed minutes. The punch bowl is still full and will be for a while. To summarize, stocks have had a nice move and might pull back a bit, but the Armageddon calls seem to be misplaced. We’ll see!
Anyway, for the day, the Dow Jones Industrial Average was up 120 points to close at 14,000. The S&P 500 was up 13 points to finish the day at 1515. Gold was up $1 to trade at $1579 per ounce, while oil was up $.57 to trade at $93.41 per barrel WTI. On a technical basis, 1500 held on the S&P which should calm the bulls. Resistance looks to be 1530 on the S&P and 14,058 on the Dow.
That’s it for this week. We’ll be back at it on Monday. Have a great weekend everyone.
