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5/28/04
Weekly Commentary by Dick Sears
The Market Also Rises

The market went up and it was good.

It had begun to look as if the only direction it knew was down. But suddenly the clouds of
gloom parted, the sun of optimism rose, and we had one of those rare and wonderful weeks when everything goes our way.

Friday was particularly amazing. Consider all the reasons it might have been terrible:

1. After five straight gains, a "correction" was overdue.
2. The threat of terrorism has made investors afraid to own stocks over weekends, and here is one that lasts three days and is of important national significance.
3. Bulls, being of sanguine humor, love long weekends and invariably get a head start on them, leaving the field to the melancholic bears, who'd rather work than play. The resulting imbalance between buyers and sellers can be painful for stocks.

Yet Friday finally entered the books in the black. It suggests this rally will continue.

Isn't it pretty to think so?

Returns for Week Ended May 28
Gilder Technology Index (GTI):  + 6.2%
Nasdaq Composite Index (NSD):  + 3.9%
S&P 500 Index (S&P):