Dow 14K? Traders say, 'Who cares?'February 1, 2013: 12:18 PM ET
The Dow topped 14,000 Friday morning. And while you would think this would be cause for raucous celebration, traders on StockTwits were humming the opening track off Miles Davis' classic "Kind Of Blue" album: So what?
You mean to tell me that you think the Federal Reserve is pumping this market up to irrationally exuberant levels with its wanton spending on Treasury bonds and mortgage-backed securities? P'shaw!
Not yet. Now everyone will start salivating about topping the all-time intra-day high of 14,198.10.
Ha! We're still about 37% below Nasdaq 5K. You won't need to worry about shedding tears of tech joy anytime soon.
It is a concern. We've written about how individual investors have come flocking back to the market and that they might be doing so at the top. Lee Munson wrote a great blog post for us defending the so-called "dumb money." But I'm still worried. And I'm not alone.
Very interesting. I think it's worth noting as well that CNNMoney's Fear & Greed Index, while still in Extreme Greed mode, has begun to pull back in recent days. It was at 87 as of mid-day Friday, down from its all-time high of 94 a few days ago even though stocks were enjoying a 1% pop following the jobs report and strong manufacturing data.
So maybe the bull is starting to finally get tired and, like Ferdinand, will finally sit down to smell some flowers and fall asleep.
Now let's get to the Reader Comment, or shall I say Comments, of the Week!
I am a word nerd. I tweeted earlier about how I found it funny that wine/beer company Constellation Brands and Pfizer (PFE) animal health spin-off Zoetis were next to each other on the trending list of StockTwits. Their tickers are (STZ) and (ZTS).
Apparently, I'm not the only linguistic dork out there.
So cute! David and Kelly, if you two aren't already taken for and you wind up getting together, then I'm proud to be your Twitter Yenta!