Today the computers say “Buy, Buy Buy” Get in there and turn those machines back on. Where’s Beeks”. Gold breaches 1200 an ounce, Silver Breaches 19 dollar an ounce.
All the traders who sold into a thin Thanksgiving market on the Dubai news, while initially re-warded, have now had their heads handed to them if they stayed short too long.
Stock indexes continue their rally. Dow futures are within 25 points of the 10,500 level. If we breach that level, there should be a flurry of trading for a brief while. We had positive economic numbers in US housing,as existing home sales have risen again. But honestly, in this market, and with the 8000 first time buyer tax credit, a small bounce had to be expected. More importantly, AIG took 25 Billion in assets and assigned it to the US Government, retiring a nice chunk of their outstanding debt with the US Taxpayers.
All in all, this is shaping up to be a December Christmas rally. If we settle the Dow above 10500 and the S&P above the 112 level, money managers who have been sitting on the sidelines will have to do some window dressing to insure the year end statements have the biggest winners of the year on their sheets. This chasing of the market will continue to propel us.
