Home Morning Commentary Morning Commentary – Dow 25,000

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Does the Dow, or the Nasdaq, or the S&P500 make new all-time high records EVERY DAY or what?  Although nobody should have been surprised to see the Dow finally trade north of 25,000, it is still amazing to see yet another day notch a new record.  It seems like it will never end, which I believe has been said before.

The charts below are from the WSJ.com and show us how quickly the market (Dow) can move from one 1,000-point milestone to another.

The velocity of the new milestones reached are coming faster and faster.  The WSJ notes: The 30-member stock average was on track to close above 25000 for the first time in its 121-year history Thursday, taking just 23 trading sessions to climb from 24000. The blue-chip benchmark added 0.3% to 25013 in early trading.  What’s more, the 23-day run was the fastest of all time!

Additionally, over 50% of the Dow’s rally is due to (just) the following five stocks.

  • Boeing +898pts
  • UnitedHealth +429pts
  • Caterpillar +407pts
  • 3M +406pts
  • Home Depot +355pts

The “speed” of the rallies, as each 1k mile point are reached, are coming faster and faster as the market rallies straight up.  Some long-time investors see this as a warning sign, as if the market is getting ahead of itself. Some call this a “blow-off” top, but could last much longer than expected.

Much longer indeed…it should continue to rally until the central panners are out of the market, which means it will go up forever.

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