Daily Investment Interpretations
December 8, 2008
(Before the Bell):
Minyanville's Todd Harrison is predicting (Dare we ask Santa for S&P at 1,000)
a fall today (Turnaround Tuesday) followed by a climb above 1,000,
followed (eventually) by lower lows than we've seen so far.
2008-12-8: As predicted, the markets rose today. The NASDAQ climbed 62.43 points (4.14%) to1,572, the Dow swelled by about 300 points (3.46%) to 8,934, and the S&P increased 33.63 points (3.84%) to 910. Oil was unchanged, while gold rose $43.71 to $769.30. The VIX dropped 1.44 to about 58.5.
The cause of this bullishness was Barack Obama's announcement of a public works program, and the pending bailout of the Big Three automakers.
O. K. What's next?
Michael Ashbaugh will report tomorrow morning, and I'll update this page when he does. One call is for another 100-to-200 points on the S&P and another 1,000-to-2,000 points on the Dow before this Santa Claus rally turns down again for the rest of the winter. My favorite stocks are Suntech (STP), Sunpower (SPWRA), Vestas Wind Systems (VWSYF), and First Solar (FSLR). My favorite alternative energy fund is the Powershares Wilderhill Clean Energy Technology Exchange-Traded Fund (PBW). My suspicion is that in his inauguration speech, President Obama will announce a major alternative energy initiative not unlike President Kennedy's Apollo program announcement, and that alternative energy stocks will take off. (If that happens, I'd expect to see U. S. companies like Sunpower and First Solar become the primary beneficiaries of such an initiative. Hm-m-m. I'll have check my alternative energy knapsack to hunt for leading U. S. alternative energy players.)
I'll be writing more here tomorrow, and maybe, later tonight if new guidance appears before morning.