Daily Close above 1305 triggers next leg up in the trend after the current consolidation phase. If the market manages a couple closes above 1305, the next levels in the new leg up would be 1400 and then 1600. It is a positive for equities that Crude is not following along today; very mediocre gain in Gold tells me flight-to-quality concerns are modest. Weaker dollar today will help manufacturing, chemical, and commodity exports.
DOW 12024.00 +132.07 +1.11% NASDAQ 2751.81 +51.73 +1.92% S&P 500 1306.14 +20.02 +1.56% New intraday highs!!!!
and inflation will utterly destroy any consumption on the consumer level. if you think this is good long term, you're smoking some good shit. Corn up 7.76% wheat up 5.63% Rice up 10.08% Hogs up 10.16% Sugar up 5.64% Orange Juice up 3.33% Cotton up 17.08% all this month alone. i'd post the increases since last august, but i already vomited once today (stomach bug). this will have a good end, will it?
And who are the fucking idiots who do not think inflation is out of whack, these increases are going to pass right to the consumer, I'm so tired of hearing how inflation is tame, its not. To see those increases in one month is absolutely insane, at the pace this is going I can say anyone who thinks inflation is not of any concern is an absolute fool!!!
From a global macro level, I would imagine that the steep increase in raw commodity prices might help US export imbalances against oil imports and Chinese manufacturing imports. No doubt the high commodity prices are a negative long term on US consumer demand, I don't think that I ventured an opinion otherwise.
So your saying you know this all ends badly... If we dont see jobs creation and rampant inflation, with this debt level... Who knows what happens....
And there is the minor pullback everyone was hoping for. Market taking a breather before the last half hour before the close climb higher!!!!!
of course it all ends badly. can anyone here honestly say that this massive rally in everything that is risk so soon after a catastrophic meltdown wherein the root causes were never corrected is a good thing? anyone? bueller?
I guess that my rationale is that the price of a stock isn't really based on those kind of thoughts. Stocks are priced on earnings and expected earnings. Our companies have far better management than they did even a decade ago. Financial managers are better equipped to keep companies in healthy positions and grow revenues in a stable manner. The market does not reflect the employment picture, it reflects company earnings. America isn't the only consumer anymore. In the long run this is going to be a huge boost for us. At this point anyone who has been long for the past two years wouldn't be hurt much by a major correction. It would just be another buying opportunity. Another poster in another thread mentioned that we have been in a decade long consolidation pattern. I can't imagine what the market would look like if we broke out to the upside. Problems like debt start to look a lot less ominous when revenue is increasing. Especially if we revamp the tax code and cut spending drastically. In that case things start to look pretty rosy. That's just my take.