A double whammy in ISM manufaturing and ISM non-manufacturing results propel the DOW to break a all time 2007 high point of 14198. Now it is near 14,276. What an achievement! It brushed it off today with a 140 points gain now.
All time high! This is a significant milestone. All time high normally signals economy is getting better as companies are doing better and are reflected by the strong stock prices. In General, this milestone reflects stocks are at their most expensive time. Without the strong earnings and better economy, it normally don't happen.
Asia Leading Investment Guru Mr Hu Li Yang once says that this bull run still has 2-3 years more. He say it last year when we are still screaming about exiting the market talking about the Euo falling apart. It proves he is right! This bull run indeed carries the US to historical height now.
How many years more? According to Mr Hu, about 2 years more. But it won't be a smooth ride forward! There will still be ups and downs. Although the long term bull run still will continue. But bear in mind that short term wise, he did mention that DOW has a strong resistance of 13600-14300.
Let us see if Dow indeed carry on the run. Let us see if there is a rubberband effect to pull it back and when it happens.
In the meantime, let Wallstreet rejoice and celebrate. Just take note that it wont last forever. Short term, there will be a correction. The question is "Will it be this month???"