Stock Market Climbs to 10-Month High

Posted by: Ben Levisohn on August 21, 2009

On Aug. 21, the Standard & Poor’s 500-stock index closed at a 10-month high of 1,026.13. The move purged Monday’s 2% drop from the collective consciousness and put the S&P 2% on the week.

The new high confirms what I wrote yesterday – that markets are poised to head higher, not lower, at least in the near term. InvesTech Research’s Jim Stack, citing historical precedent, says he expects another 10-12% from the market. He points to the average gain from the market in the sixth to tenth month following a market bottom. That would suggest the S&P 500 could close out the year around 1120, or up 65% from its low on March 9.

If you’re long the market, are you holding on for more gains? Is anyone buying?

Reader Comments

Karl

August 22, 2009 10:41 AM

Why aren't people looking at where the stock market was on October 9th 2007, and comparing it to that date? The Dow Jones closed at 14,164 on October 9th 2007. It's around 9,500 now, correct? So, it's DOWN over 30% from its close on October 9th 2007, right? Anyone can make the numbers look good if you're comparing them to March 9th's close of 6,547, right? Imagine if the $700 BILLION TARP wouldn't have been passed! That money was injected into many banks, AIG, GM, Freddie Mac, & Fannie Mae, wasn't it? Why won't the economists try & project where the stock market would be right NOW if the TARP hadn't been passed, & injected into these companies?! Here's my prediction as to where the Dow Jones would be: 3,500 or lower!

siphandone

August 23, 2009 1:43 PM

Yeap, keep buying... Market will crash in another 6-7 years from now.... Buy stocks now.......

j

August 23, 2009 5:24 PM

Order flow at large market makers does not explain the huge rally. Something smells. Is it possible a few wall street firms are driving this? Or is it some govt program where European and US central banks are driving this? Is the democrats behind this so they don't loose next election? What is going on here?

get serious

August 24, 2009 9:31 AM

buy now for 2%? good luck.

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About

Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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