Dow +337 An Early Christmas Present

It was a good day for the markets on December 20th.  Stronger yields on Spanish bonds and better sentiment led to the markets surging higher.  Any positive news is allowing domestic stocks to charge higher and they should.  Valuations are low and I think that we had a great holiday shopping season.  I believe that the US markets could go even higher then this in the very short term.  By short term I mean days.

That being said, I looked at today as a selling opportunity.  It is like a great Christmas gift from Wall Street.  As I have said in earlier blogs, the situation in Europe must be resolved for the markets to move steadily higher.  Now we also are going to have the added pressure on the markets because of the fight between Obama the Senate and Congress on taxes.  This could force markets lower as once again politicians try to throw a wrench into world markets.  Today the President and the House Speaker where going back and forth on television criticizing each other instead of getting work done on tax cuts and energy policy.  The market dislikes Obama and indecision.  The fact that the Senate and Obama are wrong on this issue is not important.  What is important is that this is another weight that may drag the market lower in the near future.  Plus lets not forget that China is slowing down also.

The markets gave all of us a great early Christmas Present today!  Don't squander this opportunity, you may end up regretting it.