Indexes are dead. they should be flying.

Discussion in 'Economics' started by scriabinop23, Jan 5, 2007.

  1. just looked at the US indexes, and here are some observations since May 2006's peak:

    Russell 2k: unchanged
    nasdaq: up 5%. immobile and consolidating from 11/05
    s&p: up 6%. immobile and consolidating from 11/12
    dow: up almost 7% - best performing and steadiest climb.

    Conclusion: Its taken us 6 months to climb avg 6% on these indexes, but with exclusion to the Dow (likely with the help of oil) the indexes have been stuck in a trading range for the last two months. 6% previous peak to current state in no way solely warrants a selloff, despite what the bears are claiming.

    EVERY piece of economic news is strong lately. In fact, today's job # is great for the markets whole year view, just not today (since worries of no fed cuts cut into upside). The market seems to forget a strong economy with jobs is surer bet, reinforcing GDP growth and positive earnings, than depending on fed rate cuts to do the same.