The Energy Sector is SCREAMING today! MRO, OXY, COP, CVX, RIG, DO, DVN, SLB, etc. And that is very supportive for the S&P.
EXACTLY! That's when I started really making money, when I stopped paying attention to the pump and dumpers and doom and gloomers on TV. ALL my losses in 2000-2003 (which were substantial) I attribute to keeping 1 eye on Maria Bartiromo and her self-interested guests while trading. For the last 2 months, on TV you had one bad news after another. And the market kept chugging higher. I can't imagine how many people sold all their longs to sit on the sidelines waiting for the big crash because they watched that crap. Then, they get back in right before it falls because they can't stand it anymore. I pity them, because 7 years ago, they were me. I can't say all of 2007 will be fantastic, but I don't think the market is oversold, I don't think there's anywhere else to put money right now, and I don't believe the dollar is falling thru the floor (because China won't let it or they'll be facing a depression that makes 1929 in the US look like happy days). While there's a good amount of caution due, and it's always wise to hedge your bets, I think the best thing to do is watch regular news on TV rather than financial news. Further, there IS no safety in a global market, if the market crashes, it's going to crash for the whole world, and no one will do well, since all our economies today are very intertwined. But because of that interdependency, the US market is as good as any other market, and better than any other instrument you can put your $$ today. Everyone with any sense knows it.
Like Joe Granville used to say many moons ago back in the late 70's and early 80's . . . "Listen to what the market is telling you." Again, the TREND is your FRIEND.