DOW 10,000
Research for Online Investors

by-John Dalt

10/14/09

The DOW hit 10,000 this afternoon to cheers on the floor. It did not last long as sell orders kicked in, then the market rallied back. The DOW first closed above 10,000 in March 1999 and slide below last October 3rd at the beginning of the financial crisis.

Crude Oil topped $75 per barrel today, amid hopes of an economic recovery.  J.P. Morgan (JPM) reported a $3.6 billion profit for the third quarter, trouncing expectations by 60%!

The Washington Post had a good article on Olympia Snowe, one of our topics in "Snowe Dressed for the Prom."  The article ends with “The work of the indecisive is never done.”

I am reminded of my time in elected politics, and the waffling and utter duplicity of some pols.  To admire anything about the process of Sen. Snowe selling her vote for incremental changes to a bill adds credence to the world that is Washington today.  The ruling class becomes further removed from the great unwashed, their constituents.  Whatever happened to ‘statesmen’?

I would rather have a representative that stood for something, than an opportunist that tests the wind before they uttered a word. I am beginning to think we would be better off with 535 “Joe the Plumbers” serving one or two terms, then going back to their jobs, than the 'professionals' we have now.

The Federal Open Market Committee released their minutes of the September 23 meeting.  The minutes seemed upbeat concerning the economic recovery and consumer spending.  The DOW pushed back over 1000!  Interest rates popped, on the discussions over withdrawing the mortgage backed securities purchase program.

I came across an article on what the hedge funds are buying. Many it seems are buying options on the S&P500, shorting the 20-year treasuries, long precious metals, and shorting copper. Crude oil is a sell and shorting the dollar seems to be the smart money bets. This is a snapshot of September’s reported actions. Don’t put too much weight on it now, markets and positions change quickly, but the behemoths cannot change direction overnight.

The market closed above 10,000 so we are ready to ride it higher!  The S&P500 is close to 1100, it looks like we are good to 1140

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With dividends, growth, and delivering what their customers want at great prices, what is not to like?  When many of the high fliers on today’s market leader board are bankrupt, WMT will be paying a bigger dividend and building stores in the far corners of the world.

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The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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