Businesses are Unwilling to Borrow

The theoretical Dow hit highs of 11,195 and lows of 10,982. We were never able to get the Nov signal and are taking it off our buy list. Nothing stops this bull run and we see topping soon and to take more prudence

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Stocks Gain on China Reserves, U.S. Earnings; Bonds, Yen Drop

Oct. 13 (Bloomberg) -- Stocks rose, sending the benchmark global index to a six-month high, as China announced record currency reserves, the Federal Reserve signaled it will protect the recovery and Intel Corp. forecast higher sales. A gauge of commodities reached a two-year high, as the yen and bonds fell.

The MSCI World Index gained 1.3 percent at 11 a.m. in New York, its highest level since April 27. The Standard & Poor’s 500 Index added 0.8 percent. The Reuters/Jefferies CRB Index of commodities added 0.9 percent and reached its highest level since October 2008. The yen weakened against all but one of 16 of its most-traded counterparts. The yield on the German 10-year bund climbed four basis points, while the U.S. Treasury yield rose three basis points.

China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion, reinforcing optimism the country will continue to lead the global recovery. The Fed said in minutes published yesterday it was prepared to ease monetary policy “before long.” Intel’s sales forecast topped analysts’ estimates.

“The market’s got a lot of tailwinds operating right now,” said John Kattar, chief investment officer at Eastern Investment Advisors in Boston, which manages $1.6 billion. “Earnings should be good, and that should be a catalyst for the market, and everyone’s looking ahead to” bond purchases by the Federal Reserve to spur growth. “All risk assets have responded dramatically just to expectations.”

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Relative to Gold the past 10 years have actually shown a steady and steep drop in equity prices.

Earnings look as if they will be strong, overall, yet nearly all market gains in recent years have occurred outside of earnings season.

Businesses are unwilling to borrow not because money is not available. That's a GOP lie. They are unwilling to borrow because they fear more changes in Washington.