Tuesday, February 1, 2011

Dow Breaks 12,000; Highest in 2 1/2 Years

It's hard to find the words to describe what happened today in the investing universe, because, seriously, if the economy is doing so well, why are 15 million Americans still out of work?

And why are home prices continuing to drop? Why are mortgage applications at their lowest levels in 25 years?

We have no manufacturing base to speak of in America, our federal government is running record-setting deficits and most states face bankruptcy from over-promising retirees.

43.5 million Americans are on food stamps.

There's a real disconnect between Wall Street and Main Street. As for Washington, well, they're doing what the American people have come to expect from them, nothing, except fighting with each other.

Since I don't have a rationale for why the market is so ebullient other than the continuous injection of $8-9 billion daily by the Federal Reserve, all I can say is enjoy it while it lasts.

Dow 12,040.16, +148.23 (1.25%)
NASDAQ 2,751.19, +51.11 (1.89%)
S&P 500 1,307.59, +21.47 (1.67%)
NYSE Composite 8,290.09, +150.93 (1.85%)

Advancing issues decimated decliners, 5218-1383. There were 185 new highs and 25 new lows on the NASDAQ. The NYSE recorded 329 new highs and a mere 8 new lows. Volume was actually fairly robust for a rare change.

NASDAQ Volume 2,281,301,250
NYSE Volume 5,423,585,500

Commodities reversed course completely from yesterday. Oil futures were off by $1.42, to $90.77, while gold added $5.80, to $1,340.30. Silver also gained, up 35 cents, to $28.51. One of the odder headlines ever seen was posted today on Yahoo Finance, saying, "Metals up due to improved economy," which is precisely why I didn't read the story. Normally, precious metals gain during times of unease or uncertainty. The unfolding drama in Egypt would be more a reason for them to gain that a wholly great economy.

It's a conundrum. Grow cauliflower.

No comments: