There was much celebrating today as the DJIA eclipsed it all time high of 14,168 last seen in 2009, closing at 14,253.77, up nearly 126 points for the session.
It didn't take long for the celebrators to show up, some singing the praises of the Federal Reserve Bank's QE policies while chastising the ECB for being so slow on the draw. Others, however, were not so giddy including a big-time hedge fund manager who essentially borrowed a line from one of college football's television talking heads.
Not so fast. That's a paraphrase of what the fund guy said, but it's close enough, as in "it's going to end very badly." If true that leaves the questions of when and how badly.
Might want to consider some June or September SPY puts.
To quickly recap the DJIA in 2008 dropped nearly 35% amid the housing market blowup and the Fed started its so-called ride to the rescue. Those 401K plans took huge hits and now with the rally some suggests they're worth more now than the last time the DJIA traded at 14,000.
Another catalyst, according to some, was the Institute for Supply Management index, jumping to 56 for February, up 0.8 from January. So despite all the wall of worry talk, many market followers focused on the good news.
The S & P 500 closed at 1,539.79, just 25 points off its all-time also made four years ago. The NASDQ likewise enjoyed an up day lead by the technology sector, closing at 3,224.13. Gold also rallied for the second day in a row ending at 1,574.60 an ounce.
No comments:
Post a Comment