All Aboard! The bulls are on the train. Even if you missed the most recent 1000 points on the DJI it is still not to late to get on board. Yesterday's record close on the DJI will not be the last one this year. In fact, I expect follow-through today and possibility more upside with a favorable jobs report on Friday. Any sell-off will be treated as profit taking and a "buy the dip" approach is back in play.I doubled up on Garmin yesterday because that bull market story is not over yet. I will also be buying all my winners on dips throughout the quarter.
Just think about it. Think about all those hedge funds and mutual funds currently behind the S&P average for the year piling into stocks in a frenzy trying to chase the average and end up above it during the last quarter. The financial stocks are marking those bad loans to market and investors are willing to give them a pass so they can focus on the future.
It all sets up for a great 4th quarter. Materials and energy will continue to work. Technology will be on-fire and financials will be able to transition towards 2008 earnings and a better future. Expect multiple expansion here. Doug Kass and the Bears have not been able to talk this market down and now a short covering will happen.
Get on the train.
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