Market Outlook and End of the Year projections

Today started disastrously, with a major block of crude oil pipelines shut down due to an explosion. This scared the Street in the pre-markets, but as the smoke cleared, things seemed to settle down. There was no sign of terrorist activity, and 2 of 4 pipelines were immediately brought back online.

Throughout the day, the market continued to seesaw, dragged down primarily by higher than expected jobless claims and lower than expected new home sales.

The market ended up slightly ahead.

Tomorrow's outlook? Bright. The Asian markets are doing well, and hopes of Fed rate cuts remain. The correction downward in oil futures have also decreased inflationary fears. Technology especially is coming out of the dog house, as more investors realize the great bargain buys that exist (Amazon, Microsoft, Cisco).

I have been keeping track of some financial stocks that I believe are great bargains such as E-Trade Financial (ETFC) and National City (NCC). I own about 350 shares of E-Trade and plan to buy National City options tomorrow.

For the rest of the year, I see positive impacts for a Fed Cut, and also normal holiday cheer in the market, resulting in the Dow closing likely above 14,000.