Last Friday, I was trying to pick a direction, and hoo boy, did I ever pick one today! I took off off like a shot this morning, got higher by the hour, and capped the session with 145 points more than I started with. Today’s action puts me up to 10,754, a point total I last saw in May! All my stocks were up except Cisco (CSCO). Why’d Cisco fall? Probably it needed a break after going on an 8.8 percent tear from Sept. 1 till yesterday. Not really sweating that, to be honest.
Let’s see, what else. I’m super excited about the Federal Open Market Committee decision coming tomorrow. The main question is whether the Fed is going to do more “quantitative easing lite” — buying Treasuries with money from maturing mortgages it owns. That’ll drive interest rates down and hopefully get some more money circulating in the economy and, more important to me, into the stock market.
So I’m like a kid on Christmas Eve about the FOMC meeting! More cash for businesses equals more points for me. But that’s not all. I think I’m developing a crush on Barack Obama! You should’ve seen the way I lit up as the president spoke today! He said he wasn’t anti-business! He also said, “The most important thing we can do right now is grow our economy.” Now that’s what I’m talking about.
I was also glad to hear that the recession ended in June of 2009. That distinction for the end of the recession vs. a continued downturn is a little bit arbitrary and economists can really only guess about the exact lifespan of a given economic cycle, but hey, having the National Bureau of Economic Research say the recession over is a lot better than having them say it’s still going on, am I right?
Then CNN surveyed a bunch of economists, and they said a double-dip is unlikely. Fantastic!
Alright, alright, some of this had to do with a technical breakout over at the S&P 500. Old S&P has been in a trading range and finally shot out to the upside. That move generated a buying spree, and I’m pretty sure some of my stocks got caught up in the enthusiasm.
September is turning into a killer month; I’m up 7.4 percent! And my year-to-date gains are reaching respectable levels — I’m in the 3 percent range there.