About a year and a half ago, I received a report from Lange Financial Services that they were adding to their long market position, and that their target was for the market to rally to “close the Lehman Gap” . This would equate to the DOW Industrials rallying to re-attain the 11,497 level. It has reached this level this week, and again today as of this writing. Not a bad call I must say.
It would be great to see the market close today above this 11,497 level, as when it does convincingly, look for a further rally to come. We are in the last few weeks of 2010, so there are certain seasonal events transpiring in the markets as well as the voting today in the House on the Tax Bill etc., therefore things are not as ‘normal’ or transparent as can be. There are many cross-currents at this unique time but the Theme is still strong- Higher Prices in 2011. Even with the delay of the vote now until possibly later, the market still acts very well with no real pressure.
I would love to see the Tax Bill FAIL and be completed next year. We would get a better deal and Obama would be officially toast. That is even more bullish!
UPDATE: We closed at 11,499 thus closing above the 11 year high on the DOW. This is positive.
Below is a video from CNBC’s Jim Cramer on the 11,497 level on the DOW.