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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Diamonds and Dogs

10,000 and Counting

10,000 Dow and You Can Feel the Tension

The Dow crossed 10,000 on Wednesday with much fanfare and optimistic hope that all is well. Stocks are acting great, as any down move is greeted with strong buying from the exchanges. For the short term, the direction has to be up, as money managers feel that nagging tension of not being the one to under-perform. Money managers are paid to manage money (primarily to the upside) and when the markets roar like this, making headlines of 10,000 etc, there is a tremendous urge to follow the crowd and pile in while the getting is good, and the bonuses are in sight. As investors, sometimes we have to fight the urge to buy just because everyone else is, realizing that you can't be out totally. It is an agonizing feeling, but one that is necessary to keep the bull market heading higher. Buyers can buy, but buyers beware!

Earnings have been mostly better than estimates with INTC, GOOG, JPM, and IBM leading the way so far. The comparisons are easy and the government money is flowing. Add a weak dollar for the large multi-nationals and this thing may have some legs into the end of the year.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.