Stocks Jump as U.S., Chinese Manufacturing Show Growth

[impik]

U.S. stocks rallied the most in almost two months as better-than-estimated growth in American and Chinese manufacturing bolstered confidence in the global economic recovery.

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Manufacturing in the U.S. expanded at a faster pace than forecast in August as factories added workers and cranked up production.

The Institute for Supply Management’s factory index rose to a three-month high of 56.3 from 55.5 in July, the Tempe, Arizona-based group said today. Readings greater than 50 signal growth, and the figure was projected to drop to 52.8, according to the median forecast in a Bloomberg News survey


http://www.bloomberg.com/news/2010-09-01/ism-index-of-manufacturing-in-u-s-increased-more-than-forecast-in-august.html

[DJ13]

1. And just who are they expecting can buy their products?

The unemployed?

[jenmito]

2. It's unbelievable to me how the sky is falling one day, and things are

going much better than expected the next day. But I'll take it. Today. :)

[JoePhilly]

5. I think it works like this .... (my view)

From 2000-2006, the market stays roughly between 10k and 12k.

Then we have the spike to 14k which lasted about 10 minutes.

Then the collapse to 13k, 12k, 11k, 10k, 9k, 8k, 7k, ending at 6,500k, which was faster than the spike.

Then from March of 2009, we went from 6.5k to BACK to about 10.5k. And briefly, we hit 11kish numbers.

The 10.5 number is back in the running average from 2000-2006.

Given the problems in the economy, the DOW bounces UP, and then comes down ... but in a range of about 9500 to 11k.

The DOW under 9k was a GREAT opportunity, if you bought in at say 7k, you made money.

Now ... we see a regular "test" of 10k. Then we bounce to maybe 10,600 or so, then retreat again.

I think that simply reflects uncertainty ... why buy at 10.5 if you are not sure its going up. Better to sell at 10.5k, and buy back in the next time the DOW hits 9999.

The point, the knee jerkers are wrong far more often that they are right.

[rucky]

3. Hooray?

[Pirate Smile]

4. Yes.

:)