Monday, January 09, 2006

Dow Closes Above 11,000

Your response to this title should by 'who cares?'. Why the DOW still gets so much press time is beyond me. To me, it still has too many old school stocks, and is really not that representative of the market or our economy. Investment managers focus mostly on the S&P 500 Index, which is a much broader basket of stocks.

In any case, the market put in another solid day. The strength of this market so far this year is really surprising some, and certainly annoying others -- namely the bears.

Breadth was also strong again, as the number of net new highs expanded. There was 332 net new highs on the NYSE, and 239 on the Nasdaq. That's higher than those numbers have been in months, and a good sign that the leadership in this market is broadening.

Of course, we will still get the inevitable shakeout at some point, but this is a necessary ingredient to keep bullish sentiment from getting out of hand.

Have a great night--


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