Who's Got their DOW 13,000 Party Hats?

[Tet]

Looks like somebodies planning a pretty big DOW 13,000 Party. Anybody going besides me? I swear to God I'm only going to have one or two glasses of punch this time. I hope the bands good.

[Sapiens]

Re: Who's Got their DOW 13,000 Party Hats?

Pop!......

[Tet]

Re: Who's Got their DOW 13,000 Party Hats?

This is like shooting fish in a barrel, I hope it lasts at least another day or two.

[Sapiens]

Re: Who's Got their DOW 13,000 Party Hats?

This is like shooting fish in a barrel, I hope it lasts at least another day or two.

I believe it is a positive feedback loop for the time being. All that money from 401K of institutional investors and company buy backs for their own stocks have created a vicious cycle. This should last until the cash flows dry up from the defaulting mortgage debtors, creating an overall liquidity crunch.

Patience, patience, all is going according to plan.

[Sapiens]

Buybacks May Be Helping Prop Up Market

http://www.cnbc.com/id/18271442

“Surging global liquidity has led to two trends: share buybacks and private equity deals, both of which result in less stock available to the market,” Liesman said. “With a surge of demand for stocks raising values, stocks seem able to prosper even while earnings growth eases. It could be as simple as supply and demand.”
The supply of available shares started to decline about three years ago. In the fourth quarter, companies retired “a record $700 billion of stock at an annual rate,” he said.

“We see this trend as continuing on, said Howard Silverblatt, senior index analyst at Standard & Poor’s. He sees "buybacks continuing on throughout the year because of the liquidity out there, companies have money, and the (earnings per share) pressure. M&A is only increasing, again, because of the liquidity."

In fact, S&P estimates that amount of retired shares is on track to hit a 42-year record as mergers, acquisitions and buybacks continue. About $1 trillion in stock--an estimated from $640 billion from private equity deals and $400 billion from buybacks--could potentially come off the market in 2007, assuming no or limited share issuance.

[Tet]

Re: Who's Got their DOW 13,000 Party Hats?

Looks like somebodies planning a pretty big DOW 13,000 Party. Anybody going besides me? I swear to God I'm only going to have one or two glasses of punch this time. I hope the bands good.

This took 59-trading days for the DOW to gain 1,000 points and hit 14,000, I'd say the rally is over when the DOW takes less than 24 trading days for a 1,000 point gain which is the current record for the quickest 1,000 point gain on the DOW. DOW is up over 31% since last summers low, looks like the trend should be your friend. Still plenty of cash sitting on the sidelines and still a whole lot of shorts that need to cover. All that 401K money comes in with only one direction to go, LONG, now why is that? Last week the controller at work asked my opinion about him getting out of bonds and into more equities. One things for sure, this market continues heading higher until he sells his bonds. That's how a zero sum game is played.