DJIA & NASDAQ will follow uptrend into Jan 2007
I’ve made up my mind. The past few trading days the market has continued to move up with more positive merger news. I feel the stock market will move higher finally hitting that DJIA $13,000 mark the Bulls really want to see. On merger monday Bank of NY buys financial securities giant Mellon Financial off weighing Pfizer’s bad news of it’s drug halt the market still optimistically continued up. Both bank stocks moved higher. As for Pfizer’s drop of 12% I do not think that will last for long. The stock price could continue to move a bit further down, but Pfizer is also a giant and a drug profit machine. With new Democrat house in control new regulations and laws pharma companies could be in for a problem. Republicans have been really creating corporate profit machines with the right tax laws helping out Mr. Big Corporate America. I see PFE moving from $24.90 regaining its price of $27-30 within the year depending on if Pfizer comes out with another wonder drug or patients start staying alive instead of dieing!
Paul Meyer 
I posted a response to your comment. Feel free to expound.
December 6, 2006 at 2:22 am
I posted a response to your comment at my blog http://splangile.com. Feel free to expound.
December 6, 2006 at 2:22 am
Curious what is your logic behind DOW going to 13,000. Thanks.
December 6, 2006 at 11:16 pm
My logic is everything is at 5 year highs, companies are raking in high earnings and profits so I feel investors will not sell capital gains until next tax year holding their stocks into Jan 2007. The DJIA and NAS both have had mega bullish runs and there is no sign of a big reversal yet. I was very sure the market was going to turn and throw up some, but it was only a minor correction at the end of Nov 06. Stocks and indexes have staid close to their uptrend.
This is my reasoning. Lately a lot of bad news about Fanne Mae, Ford, GM, and Yahoo! haven’t really pinched the market like they should of. I even heard from a friends on the news today that 5% of Apple iPods had problems with batteries that is a given. That happens years ago. It’s a common thing with mp3 players because they over heat having such a big harddrive in a little piece of technology. Apple is down today. Apple did make a good point that Microsoft Zune’s player will sell around 1 million units up to Jun 2007 but that can’t compare with Apple’s iPod selling 38 million units within the same time frame.
I added a chart to show my trend and technicals I see on the index.
December 7, 2006 at 5:26 am