Where's the Top?
The May 29, 2006 edition of Business Week is out and on page 97, it talks about the fact that while stocks may be high, an examination of them from three angles shows they're likely to stay aloft.
Only 30 out of thousands of stocks make up the Dow Jones Industrial Average (DJIA), but in the public's mind, it is the stock market. So when the DJIA flirts with a new high, people take notice.
On May 10, the index closed to 11,643, a shade below its all-time high of 11,723, only to give back 223 points in the next four sessions.
As the DJIA reaches for the heights, investors face that age-old conundrum: Is the stock market hitting a ceiling or is it building a new floor?
Analysis shows the market has sturdy economic and valuation underpinnings, but the technicians who study trading patterns and volume expect headwinds. In other words, use pullbacks as buying opportunities.
* * * * *
Only 30 out of thousands of stocks make up the Dow Jones Industrial Average (DJIA), but in the public's mind, it is the stock market. So when the DJIA flirts with a new high, people take notice.
On May 10, the index closed to 11,643, a shade below its all-time high of 11,723, only to give back 223 points in the next four sessions.
As the DJIA reaches for the heights, investors face that age-old conundrum: Is the stock market hitting a ceiling or is it building a new floor?
Analysis shows the market has sturdy economic and valuation underpinnings, but the technicians who study trading patterns and volume expect headwinds. In other words, use pullbacks as buying opportunities.
* * * * *
posted by Bob Moser at
1:42 PM
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