As 2010 coming to an end, the market continues to move higher. If I were ask to describe 2010 in one word, the word would be “unbelievable.”
It is unbelievable for the Nasdaq 100 to move beyond the 2008 high and is approaching the 2007 high while the U.S. unemployment rate at 9.8%. It is unbelievable the SP500 and the DJIA are making multi-years high while the U.S. deficit and its debt are in multi-trillion dollars level. But let’s not forget, the market is a leading indicator and the high the market is making is not reflective of what was and what is, instead it is signaling on what to come. Already this holiday retail sales has being revised upward with a projection it will increase 3.3% over last year’s holiday sales, and the consumer sentiments are improving, and the latest tax extension bill passed by the congress and signed by the President remove many uncertainties for businesses and taxpayers. All of these positive developments can only lead to a stronger U.S. economy, and that is a good thing. I believe the market is telling us better days are approaching, 2011 will be a better year for the U.S. economy, and just maybe it will be the end of the deepest recession since the depression.
Have a happy holidays.
Nasdaq 100 (daily):
Nasdaq 100 (weekly):