MARCH 13, 2012 Break-Out?
With lots of cheering by the media as it ‘reports’ these ‘new highs,’ let’s put these advances in perspective. First the NASDAQ, and tomorrow the DJIA and the S&P500.
The NASDAQ has now closed above its 2007 high for several days in a row. Be alert, though: it failed to stay there last year. But an analysis of how and why 2012 is different from 2011, explaining why that sharp drop will not reoccur, has yet to surface.
Further, the current NASDAQ remains far below its 2000 peak. Sure that go-go gallop tripped over inflated earning perspectives, nevertheless does the current, some 50 percent discount reflect, or overstate reality?
