by Peter Switzer
Another positive day on Wall Street and it is clear that ‘no news’ is good news. To be more precise, in the absence of bad news, stocks sneak higher.
And the longer this goes on, the more believable this rally becomes.
For the record, the Dow was up 6.51 points, or 0.05 per cent, to 13,239.13. We’re now 239.13 points away from the 13,000-level, which was hard to break. Only really bad news will easily wipe 239 points off the Dow. The S&P 500 ended up 5.58 points, or 0.4 per cent, to 1409.75 and this was a solid rise.
Fear-wise, the VIX or fear index is close to 15 and this is a good sign for this rally. But the best sign is the newfound popularity of US banks. This is an important psychological milestone as it gives the rally solidarity.
I regularly talk about eventual sell-offs but these will be profit-taking consolidations.
Another plus is the homebuilder sentiment index at the best level since June 2007! That’s pre-GFC. That’s a really good sign!
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Published on: Tuesday, March 20, 2012
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