The Market Explodes Upward
Apr 15, 2010
Posted by Jody Eisenman | Filed under Uncategorized
In a continuation of the ongoing rally, the Dow Jones shot up another 102 points today, the biggest move since a 122 point gain on March 5. The S and P 500 crossed 1200 for the first time in a year and a half. These powerful moves have caught most people, including yours truly, by surprise. Although the market is probably overdue for a correction, any small sell off is immediately met by another surge of buying. Although the unemployment rate remains high, the real estate market is still uncertain, and Bernanke continues to ward about the US debt problems, no one on Wall Street seems to care. I get calls from people constantly who are amazed at the depth and breadth of this rally.
Before the opening, Intel and JP Morgan reported better than expected quarters. As such, most of the banks and semiconductors had a strong day on the upside. One of strongest was Citicorp, which rose another 31 cents today to close at $4.93. The stock was trading close to $3 two months ago. On the other hand, Citicorp is still way off its’ high of $50 less than two years ago.
Trying to go short in this market this year has been suicidal. On the other hand, statistics show that the average investor has not really participated in this rally unless they never sold on the way down. Many investors still do not believe that the market is the place to be. With that healthy dose of skepticism in place, it would seem that the market may continue to move higher.
