DJIA 14,000 On Tap
Nicholas Santiago | Feb 01, 2013 01:31PM ET
Last week, the S&P 500 Index reached and breached the psychological 1500.00 level. Today, the Dow Jones Industrial Average (DJIA) is trading higher into the important 14,000.00 level. The DJIA is the index that the public will follow most closely. Remember, the average person that works a nine to five job will turn on the evening news and hear what the stock market is doing in terms of the DJIA. If you ask most people in the public what the Russell 2000 Index is they will most likely not have a clue what it is.
This coming Sunday is the National Football League's Superbowl Sunday. This day has almost become a national holiday in the United States. What better way to get people to spend money than to have the DJIA close at or above the 14,000 level by the end of the trading session. It is important to note, if this entire money printing stimulus by the central banks is going to work for a while, it will need the U.S. consumer to spend money. Consumer spending accounts for roughly 70.0 percent of the gross domestic product in the United States.
Right now, the stock markets seem to be somewhat euphoric. Bad economic news is now good news and good news is now great news. The major stock indexes are all overbought at this time, however that does not mean that they cannot climb higher. Usually, when public gets back involved in stocks it is when a major correction will take place. After all, the large financial institutions need to have someone to sell to.
Some leading index funds that are rallying higher today include the ProShares Ultra S&P500 (ETF) (SSO), ProShares Ultra QQQ (ETF) (QLD), ProShares Ultra Russell2000 (ETF) (UWM), and the ProShares Ultra Dow30 (ETF) (DDM). Watch for Dow Jones Industrial Average to reach that psychological 14,000 level by the closing bell. The last time the DJIA traded this high was in late 2007.
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