Are we headed towards Dow Jones @ 11000?

An article by pgupta    No Comments

After almost a month of bear market, it seems like we are heading towards the green land again. No blood on the street does look awesome. However investors are still being very careful. Job loss claims seem to be rising once again; that could be an indication of economical growth slowing down again!

Europe seems to be coming together with Spain being able to pay their debt on time. BP’s fate has been decided after them depositing 20B USD in escrow account. There is a good chance that BP will get bought over by a large oil firm. Their stock has gone down almost 50% in past few weeks, which does not reflect nicely on their cash position either after cutting out the scheduled dividend.

There might be some more sell off planned for next few trading days but overall market sentiment seems to be good. That is purely based upon strong US economy indicators such as retail sales.

Lets keep cash in the account to take advantage of any unforeseen dips in the market! Be sure to chase the solid stocks with promising EPS. This is the time for strong companies to become even more stronger.