The Next Great Bull Run

This is it.

The Bull market has been so firmly established by market fundamentals, charts and Dow Theory (see yesterday's post) that there can be no denying the US stocks are in the midst of a major bull run.

After the banking meltdown of last September through November, the ultimate third wave crash ending on March 9, 2009 and the resulting snapback, 6-month rally, bulls are once more in complete control over the stock markets.

Thursday's trade was the fifth consecutive winner on Wall Street and further confirmation of a secondary trend wave. The closing price on the Dow today was 9,627.48, which is two points better than the interim top on November 4 of 9625.28. Charts do not lie. This is a further confirmation of the bullish trend. For more convincing, see the double top in the point and figure chart formation here.

The Dow Jones Industrials closed at a 10-month high, the NASDAQ at another 11-month high and the S&P 500 at an 11-month high (October 6, 2008).

Stocks were led by the transportation and basic materials, though all twelve sectors were positive. The laggards were financial, healthcare and utilities.

Dow 9,627.48, +80.26 (0.84%)
NASDAQ 2,084.02, +23.63 (1.15%)
S&P 500 1,044.14, +10.77 (1.04%)
NYSE Composite 6,850.81, +78.41 (1.16%)

Simple indicators were screaming buy to anyone who would listen. Advancers beat decliners, 4663-1765. New lows were trampled by new highs, 351-80. Volume continued yesterday's trend with the NASDAQ showing very strong trading activity (nearly 80% up) with the NYSE lagging still, though most of the volume was on the sell side, as were the vast majority of new lows (74-6).

NYSE Volume 1,580,281,000
NASDAQ Volume 2,483,736,000

Commodities were mixed, with oil gaining 64 cents, to $71.94; gold off 30 cents, at $996.80, and silver up 20 cents to $16.67.

Markets were buoyed by improving unemployment claims. Both initial and continuing claims were lower in the most recent data week.

Bulls are in control, with price targets for the S&P ranging from 1100 to 1250, and 10,500 to 10,900 on the Dow.