The Dow hit a 13-month high today closing at 10,226.94.
A 200+ point rally today.
While I’m still concerned about the 100+ point fluctuations in Dow’s daily closings, I’m confident we’ll close 2009 by recovering the ground lost in October 2008.
That’s 1800 points in 7 weeks, ~30 trading days, an average of 60 points per day.
It’ll take work and – given the volatility of the market these past couple weeks – the absence of any slightly unfortunate news1. As I mentioned in my last prediction – I see the Dow undervalued below 12k.
1. While I’m confident we’ll hit 12k in the next few weeks, I’m not confident that everything to guarantee it is currently priced in. That’s why this is a prediction. 🙂