Goldman raised outlook for 2011 growth to 2.7%. They also gave a crazily high target for the S&P 500 of 1450 by the end of 2011!
Goldman also raised financials to OVERWEIGHT.
This resulted in heavy buying of most financial stocks.
Goldman Sachs lifted the spirit of the markets today and the 10% jump in pending home sales also surprised market participants.
Expect bullish momentum to help the DOW break through the resistance at 11500.
Technicals are really good.Financials and Bank Of America (TP $13.20) look very bright now.
I believe this is the DECEMBER Santa Claus rally. On average, DOW rose 1.7% on Decembers. The highest was a nice 6+%. It looks like we are going to see somewhere at the 5% level and that would bring us right to 11800 or 12000!
Are we overly optimistic now? Is this a bull trap or is the market really setting up for the next leg of the rally.
We got the NFP report tomorrow to help boost stocks again. If the reading shows some where around 180k, we will see another 1% increase.
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