Dow Surges Past 10,000 Mark

AP | 12/5/01 | Amy Baldwin

[hove]

" Last week I was up 30% from start.

Well that cooled my sarcastic jets..;>) Seriously...that's some pretty skookum investing. I wondered if I should invest in some defense stocks. Proabaly couldn't lose....

[RightWhale]

after the QQQ

He does well on broad market trends. The QQQ recommendation was pushing his own boundaries and he was wrong, which he admitted, but he did say it was short term. It will be back some day, but if somebody needs to cash out now they will take the hit. I don't know if the Plunge Protection Team has a new assignment to build general market strength, but somebody is buying.

[Tauzero]

"The stock market right now is a bettors game and is not a true indicator of economic conditions."

Actually, the major stock indices are the leading economic indicator.

But this rally is a false dawn.

[Free Vulcan]

Fundamentally the market is way overvaluated and in need of a major smackdown to about 4-5000. However this current P/E ratio will be the baseline till we have a recession serious enough to drive the random walkers out of the market.

Techinally, the Dow and Nasdaq both broke thru round number resistance, while the S&P broke out of a nearly 2 year old bull channel on huge, almost blowoff level volume. I don't think it is a blowoff, but a continuation move, I think there was a particularly large of pool of money on the sidelines looking for confirmation to get in. The upper target would now be around 1400 on the S&P.

[KC_for_Freedom]

I wondered if I should invest in some defense stocks. Proabaly couldn't lose....

Well Lockheed Martin (LMT) has had a good year, but everytime the tech stocks rise it seems that Lockheed takes a hit. The problem is that they win these big programs, like Joint Strike Fighter then people realize the money will come over 15 years. Lots of job stability though, LMT is hiring.

[Number_Cruncher]

All this negativity is somewhat bullish. Reminds me of August 1982 when I put everything I had in the stock market.

[Quilla]

Thank you for your advice. I do indeed have an advisor who I trust and have divided my accounts in a similar fashion.

dot bomb

Ain't it the truth!

I dabbled with tech IPO's in 1999. Never held a stock over ten minutes (talk about hitting the refresh button) and made a scandalous amount of money. I noticed one strange coincidence and the theory held all year - the companies with the largest percentage of losses performed the best as far as initial pops were concerned. It was indeed bizarre and a warning that the tech sector was not all it seemed to be. I suspect we will never see anything like that again - much to my disappointment. However, as I mentioned yesterday, I still have a funny feeling about ACH. I'm not sure when it will start trading (probably today or tomorrow) but I'll post the results when it does.

[bvw]

What do you make of Enron, and the "too big to fail" philosophy?

[bvw]

Maybe someone knows: Where does the term "secular" in secular bear market come from?

[yournamehere]

BTTT - This thread is worth keeping alive.

No, thankfully!

I have since been politely reminded that this theory has been mainstream since 1Q '01. I believe AB has shared many thoughtful insights to the theory though.

Ken

[yournamehere]

re: post 85

Technology sector bounce in 02 ?

My company and many others I know are about to spend hundreds of thousands in Dell, EMC, CISCO, etc...

[yournamehere]

I believe the term "secular" would indicate a rise or fall in a particular industry. For example, we might anticipate a potential bullish market in the technology sector for the first quarter in '02, or for a more accurate example, we could describe a bearish market in the travel industry in 4Q '01.

[Tauzero]

"I predicted earlier this year that the tech sector was going to rebound strongly in 2002. That forecast was based entirely on tax law and the effect that Y2K had on equipment replacement cycles....

2002 figures to be a banner year for the tech stocks, since all of that stuff that was purchased in 1999 will be due for replacement.

You heard it here first "

Are you ready to revise that?

[Tauzero]

"Q2 of '02 is going to be *spectacular* ... "

ahem

[Tauzero]

The bulls are hilarious in retrospect.

[Wyatt's Torch]

This is the 5th straight quarter of the "recovery starts next quarter" economy. I do think the macro stage has been set up for recovery but I think it will take a year for earnings to catch up.

[usconservative]

Your point is exactly what? That I was wrong? So what. Do you have a habit of finding people who are wrong and doing one word posts of "ahem" or something?

Sheesh...