Courtesy of John Nyaradi.
Today we saw the S&P 500 establish a new record high despite continued European tremors and economic fear
The S&P 500 Index hit its all time high today, closing at 1569.19, just a few points above its October 2007 high of 1565.15. The Dow Jones Industrial Average also saw its highest performing quarter since 1998. The Dow’s and S&P 500′s stardom come on the heels of yet another round of the European debt crisis centered on Cyprus alongside continued easing from the Fed and Dr. Bernanke. Considering that today’s economic reports were less than satisfactory, today might be just one of those “don’t fight the Fed” kind of days.
Index ETFs naturally followed along today, with the SPDR S&P 500 ETF (NYSEARCA:SPY) rising .31%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) adding .25%, the NASDAQ ETF (NASDAQ:QQQ) inching up .25%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) rising .12%.
So, today was a good day to not fight the Fed, as it appears clear that Dr. Bernanke and the Fed continue to push markets up despite significant headwinds from abroad and at home. Global financial markets continue to defy gravity even though certain countries in Europe are on the brink of collapse. Also, the economic numbers don’t quite match the market records, as we saw a 16,000 increase in initial jobless claims this past week, and the country’s 1st quarter GDP for 2013 indicated a .4% increase. Chicago PMI also posted a big miss on expectations. Fourth Quarter 2012 GDP Revised Upward to 0.4 Percent
Bottom Line: “Don’t fight the Fed,” and keep an eye on developments in Europe.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
