Wow!
I mean wow! Will this market ever go down? My mother called me this morning and she's raising her GDP outlook for 2011 too - that's how crazy things have gotten out there. I'm just waiting for the Pope to come out and tell us to buy CMG and Netflix and THEN we'll know it's a sign. I called it wrong on Friday morning as I thought we were fading out for the week but instead the Russell flew up for a 1.2% gain on the day while the Nas gained 0.8% and the rest put up between 0.3 and 0.5% (check out David Fry's charts as well as Market Tamer for the whole story) - on the whole, a bullish day - especially when we are starting to look strong above our breakout levels.
That's the key now, we've been watching Dow 11,500, S&P 1,220, Nasdaq 2,600, NYSE 7,750 and Russell 725 for a very long time and, other than the Dow, our indexes have now smashed through that upside resistance and look like they are heading to the moon - especially the Russell 2000, which is up 25% for the year! Small-caps may not be hiring or making a lot of profit and they may not have the ability to get loans from the bank and their customer base may be hurting but BOY, just look at that performance!
And, as I've said before, once you break the orbit of a fundamental market, then "Stock Market Physics" no longer apply and there is no limit to the madness that lies ahead of us when (and if) the Dow breaks that 11,500 line. With the Russell up 25% and the Nasdaq up 17%, the Dow, NYSE and the S&P are looking kind of pokey hanging around the 10% lines, aren't they?
