Tuesday, November 13, 2007

Hell has frozen over: Walmart reigns supreme

What an unbelievable day on the street!

Dow up 319. Nasdaq up 89, and S&P up 41!

Just insane. And what caused all of this?

Well, it all started with Walmart. That's right. Today, Wall Street cared completely about what was happening on Main Street, and on Main Street, Walmart had made a better than expected profit off of what many considered a dismal quarter for retailers.

Why did I mention hell freezing over? Because never in a million years did I think that one day I would say to myself "Thank God for Walmart", but I did. And now let's put it behind us and never speak of it again.

The rest of the day was a parade of major banking institutions' CEOs giving their view of the credit markets, led by Lloyd Blankfein, CEO of Goldman Sachs, who announced that Goldman going to have an significant write-down of its assets.

My outlook is that this new found exuberance will last until at least Thursday. Friday will be a tough day as options will be expiring, and there always tends to be a downward trend on expiration days.

For the next few weeks, volatility is still high, but if oil continues to fall and the dollar continues to strengthen, I predict we can see a resurgence of the Dow getting close to the 14000 mark again by year end.

I certainly have money riding on that.

And because I haven't done this in a while, please note my disclaimer, which is also on the bottom of every page on my blog:

Disclaimer: I am not responsible for any financial and/or personal situations that arise from information in any of my blog posts. Financial advice is given to the best of my knowledge, which may or may not be accurate. Stock picks and stock market analysis should be considered 100% bias, as I will obviously talk about good/bad picks that I personally may or may not be considering/holding.

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