Take me off the leash and I'll run all day long. This market gives me the "free" feeling again. I suppose we bounced and can again run for awhile before we need to pull back at the instance of merely a whistle. I say run towards DJIA 11,000. Except for the 13-year bubbles between 1995 and end of 2008, the market showed a normal exponential growth. So, what's wrong with expecting a conservative retracing of that curve? We're on it now. Next resistance is 10,000 plus or minus 100. Beyond that depends on whether we solidly break through 10,000 towards the next stop of 11,000.
There have been rumors that Obama is feeling the pressure of supply-siders to cut taxes. Makes sense -- Common Scents. Reduced corporate taxes means more hiring. More hiring means less unemployed. More hiring means more spendable income to spend. More spending means growth to small businesses (retail and services), as well as large (suppliers of capital goods and services). More spending means economy growth. Better economy means more investors in small businesses, both existing and NEW (this is where rich put money -- this is why you don't want to increase taxes on the rich). More business growth = more jobs = more spending money = more profits = salary raises = more spending money. And so on. Only this time, please don't make the credit mistake again! People need to EARN the right to better financial health. Stop the give-aways. We don't need to topple the economy again with unrealistic loans -- we worked and rented for 5-6 years to get enough down payment for a house. So, what's wrong with the same paradigm today?
Oops! Off the subject. Back to the market. You're on your own whether you want to buy stocks now. You missed a good 3-4 days before the last 2 to get in. There is still something left in the rise, but, 10,000 will be the testing point. If it again is resistance, 9325-9425 could again be the support. Do pick solid performers though until Obama lowers taxes.
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