Wednesday October 04, 2006

Dow soars to new closing high of 11,727

chron.com :

The Dow Jones industrial average finally reached new heights Tuesday, extending Wall Street's seven-year recovery with a record closing level after climbing into uncharted territory in trading earlier in the day. The index of 30 blue chip stocks ended the session at 11,727.34, wiping out the previous record of 11,722.98. Earlier, the Dow crossed its old trading high of 11,750.28, rising up to 11,758.95. Both of the previous records were set Jan. 14, 2000.

The Dow has recovered ahead of the broader Standard & Poor's 500 and the Nasdaq composite index, which also peaked in early 2000. Those indexes were inflated - overinflated in the case of the Nasdaq - by the dot-com bubble. The S&P 500's high close was 1,527.46, and the index remains more than 12% away from that milestone. The Nasdaq is even further off its highs and no one expects it to eclipse its record of 5,048.62 any time soon.

The market's recovery was helped by more than four years of solid corporate profit growth, and more recently, the Federal Reserve's decision to halt its more than two-year string of interest rate hikes. The decline in oil prices was the catalyst of the day. A barrel of light crude settled at $58.68, down $2.35, on the New York Mercantile Exchange. Oil prices have had a stunning fall from their intraday high for the year of $78.40 a barrel, reached in July. "When oil and gold start to back off, that's a sign that the economy is slowing and inflation is not a fear," said Joseph Sunderman, vice president of research and development, Schaeffer's Investment Research in Cincinnati.

- The Dow reaching record highs amidst a slowing economy? Hmm. Look at the long-term chart above. It looks like a classic double top forming. Another 2-3 years, and it could go below 5000, easy. What do I think? Sell!! LOL. Anyway that's my personal interpretation, not intended to be investment advice, bla bla ... :)

(2006-10-04 12:33:43 SGT) [Biz] Permalink

Most popular blog postings on lowem.log :

1. Singapore MRT rail network length to double by 2020
2. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
3. Live spot gold price quotes chart on COMEX
4. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
5. AVG Anti-Virus Free Edition 2011 direct download link
6. Real-time live gold and silver price quotes chart on COMEX
7. Singapore electric vehicles : Government agencies EMA and LTA to study EV introduction
8. Book review : Shut Down by William Flynn

Featured articles on lowem.log :

1. Book review : Shut Down by William Flynn
2. Singapore electric cars testing starts with 9 electric vehicles
3. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
4. 2010 Honda Civic Hybrid preliminary specifications released
5. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
6. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore : Nuclear power not ruled out