The Market Today

Now this is a market I like! The day started off pretty slow for the market in general, and our Buy List in particular. But then after 3 p.m., things got moving. The S&P 500 closed up 0.61% and the Buy List was just behind at 0.57%.
This was another day were a diversified Buy List really helped us out. Energy was the star, and although we don’t have any energy stocks, we were able to keep pace with everyone else. Investors are beginning to focus on quality. I thought it was interesting that both eBay (EBAY) and Donaldson (DCI) jumped over 3% today, although some of our medical stocks like Biomet (BMET) and Stryker (SYK) were weak. Dell (DELL) closed above $30 a share for the first time this month. Varian Medical just issued a big stock buyback. As I’ve said, I’d prefer to just get the dividend.
Today was an impressive day all around. The energy sector was particularly strong. I think energy’s run is over, and I expect to see a big pullback in energy shares. Almost everything has been working this month except energy. Since we don’t have any energy stocks on the Buy List, we’re nearly doubling the market this month. I think today’s energy move was a classic “bear market rally.” This is just a snap-back inside a large downtrend.
Benjamin Schachter of UBS is the first analyst to give Google (GOOG) a $500 price target. The stock closed at $409.36 a share today. It went public 15 months ago at $85.
I was happy to see the Dow close over 10800 and the S&P 500 finished over 1250. The Dow is now positive for the year. Gold is now about to hit $500. However, gold is still not appreciating as fast as corporate profit growth.

Posted by on November 21st, 2005 at 7:09 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.