Looking good – Again.
Was it only just before Halloween that we were last enthusiastic about possibly breaking over our 5% lines It seems so long ago – yet here we are, on Election Day (well, interim election day, which hardly counts) all enthusiastic again about how great everything is – what with Europe being fixed and all…
I know, rather than Election Day, it seems more like Groundhog Day (the movie, not the actual day when Americans think a large rat can determine the weather) and not just because we keep electing the same idiots to office over and over and over again but because we are led through this market cycle over and over and over again – wondering – when will it ever end
Up would be good – Hell, DOWN would be good – anything but dipping back into our range for another few months of nothing in particular. Yes, I know I’m the one who called the range and we’ve had tons of fun playing the range but, come on – it’s BORING! Just 100 lousy Dow points and we pop that 5% line and another 100 and we’re really getting somewhere – is that too much to ask
Sadly, it just might be. Let’s ignore the other 8,970 stocks and talk about the Dow. We need 200 points there or about 1.5% and those are our large-cap Industrials like AA, BA, CAT, CVX, DD, GE, UTX and XOM and our Consumer Product giants like DIS, HD, JNJ, KFT, KO, MCD, MMM, MRK, MSFT, PFE (we consume A LOT of drugs!), PG, T, VZ and WMT, Tech Titans like CSCO, HPQ, IBM and INTC as well as key Financials like AXP, BAC, JPM and TRV.
Hmmm, come to think of it, that’s not too many actual industrial companies in the Dow Jones Industrial Average, is it A reflection of the sad state of American industry, I suppose. Still, it’s the index we’re stuck with and, if we are going to believe they have a good shot at making that 5% line then we have to believe they are, as a group, undervalued by at least 1.5% – especially, CAT, CVX, IBM, KO, MCD, UTX and XOM, who are the heavy-weights of our price-weighted index.
XOM and CVX are up considerably in the last month due to a 25% jump in the price…
