Diamonds and Dogs
10,000 and Counting10,000 Dow and You Can Feel the Tension
The Dow crossed 10,000 on Wednesday with much fanfare and optimistic hope that all is well. Stocks are acting great, as any down move is greeted with strong buying from the exchanges. For the short term, the direction has to be up, as money managers feel that nagging tension of not being the one to under-perform. Money managers are paid to manage money (primarily to the upside) and when the markets roar like this, making headlines of 10,000 etc, there is a tremendous urge to follow the crowd and pile in while the getting is good, and the bonuses are in sight. As investors, sometimes we have to fight the urge to buy just because everyone else is, realizing that you can't be out totally. It is an agonizing feeling, but one that is necessary to keep the bull market heading higher. Buyers can buy, but buyers beware!
Earnings have been mostly better than estimates with INTC, GOOG, JPM, and IBM leading the way so far. The comparisons are easy and the government money is flowing. Add a weak dollar for the large multi-nationals and this thing may have some legs into the end of the year.
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