The End of the Recession

Well according to the definition of economic recession (2 consecutive calendar quarters of negative GDP) we are no longer in a recession. GDP numbers released on Friday show the 2nd straight quarter of positive GDP. This last quarter even grew faster than analyst predicted.

So what is the market saying? Well, we've been headed down the last few weeks but I think we still have upside potential. I have been going back and forth between calling for a pull back ending between Dow 10,300 and Dow 10,000. Look like we are in that area where I expect the Dow to turn higher (market closed Friday at 10,067).

I think we will turn any day now and resume our run up to Dow 11,000 or there abouts.
We are currently building a sell signal in the bond market, we are currently NOT building a sell signal in the stock market.

I'll keep posting AND I'll keep buying the total stock market.

A New Year, A new Decade

The total stock market as bench marked by the Wilshire 5000 index gave us a total return in 2009 of 29%. Not too bad. Since I last posted, the high in the Dow reached 10,580. I see no danger of significant drawdown. We will continue to invest into the total stock market on a monthly basis. Although we may see an occasional pullback, overall, I'm looking for more upside as we go forward into 2010. I see the Dow hitting 11,300 before the end of July.
Happy 2010 to you and yours.