Why are stocks trading at record highs? Last week we had a dismal report on unemployment, rising to above 10%. Stocks should have opened weaker today. Wrong. Stocks surged to new highs with the Dow trading at 10,147 up 126 points. Why the sudden change ot trend? The catalyst came over the weekend when the G 20 agreed to keep stimulus packages in place for their respective economies. Traders interpreted this as a buy signal because it means that more money will be sloshing around the world stimulating business and increasing profits.The gold rush is still on, with gold trading over $1,100.00 per ounce. Crude oil is trading up $2.07 per barrel at $79.50. The dollar is taking a pounding, down 1% to a new low for the year. Bond prices, which move in opposite directions, fell, with the 10-year note yielding 3.49%.
Brian Battle of Performance Trust Capital Partners feels that cheap money is being pumped into world markets fueling rises in currencies and commodities.
The breath of the advance saw advancing stocks over decliners 10 to 1. The Russell 2000 of small stocks rose 10 points to 590.35.
So, for now the bull is loose and charging to new highs.
Do you believe that this bull market will continue higher?
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