Friday, May 18, 2007

Another Day, Another Dow Record

The beat goes on and on and on...

Investors got back to their habitual buying on Friday - as the oil boom also continued apace - with little to hold them back. There was scant economic news and with the world awash with money, traders sent stocks soaring on all major indices.

Dow 13,556.53 +79.81; NASDAQ 2,558.45 +19.07; S&P 500 1,522.75 +10.00; NYSE Composite 9.893.74 +74.76

In addition to the Dow crashing through the 13,500 mark, the S&P closed to within 10 points of its all-time record closing high and the NASDAQ broke through a key support area at 2,553.00.

As has been repeated here ad nauseum the environment for corporations in the United States has never been easier and more conducive to high profitability. There is literally no government oversight and regulations are lax or outright disregarded.
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Empowered by a hands-off government, American corporations are able to bend rules and break laws at will and many of them are more than willing to take full advantage.

Investors sense this giddy atmosphere and are piling into US stocks like never before, the consequences be damned. America is at the height of its power and Wall Street is bent on cashing in.

The overall breadth of the market was not pronounced on Friday however, as advancing issues outpaced decliners by a modest 5-3 ratio, though new highs stepped up to 404, versus 126 new lows.

Oil was up only 8 cents, while the metals rebounded slightly after a recent spate of selling. Gold gained $4.80 to $662.00; silver was higher by 12 cents to close at an even $13.00. It wasn't but a week ago that silver was threatening to break above $14 and gold set to surpass $700, but the rally fizzled badly.

By any measure, this was one of the best weeks ever to be an investor, in one of the best years, so far.

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