391. Market Still Looking Up

Sam's red rubber prediction toy says the stock market is still looking solidly positive despite some small DJIA down days. The NASDAQ performed well this past week. I have been keeping it simple by predicting the stock market solely on the DJIA, but we all know the NASDAQ and DJIA don't always move in the same direction as it has during the crises. The NASDAQ is where you find the small companies that will usually grow (or fall) more depending on the financial climate. As reported in previous posts, manufacturing and service revenues were picking up and I stated that many of the services and product/raw material providers need to grow to supply the larger companies. This has begun in my opinion. The NASDAQ reflects the future optimism for small companies and tech companies. Investors are starting to add these, which have higher risk and higher potential gains, driving the NASDAQ higher.

This coming week, I believe Europe will remain asleep, Iran couldn't come out with anything that would drive oil higher, China will forage along positively. Many other considerations, but my focus will be on our U.S. company earnings. Retail should fare well after a 15% in revenue compared to last year's holiday season. Expect more money flowing into techs and Nasdaq stocks. Where will the money come from? Investors have hoards of cash lying around, plus consumer stocks, like McDonalds, Pepsi, Coke, Smuckers, etc. might see smaller increases than the leaders or even down slightly. Thus, your diversity working -- they usually maintain value or drop less when the techs turn around.

I'm still looking at the DJIA running to 12700 before hitting any real resistance. The Nasdaq should go up higher percentage wise during the next two weeks.

We thank Sam for leaving her red rubber prediction toy back here on Earth.