Bulls Seek Fresh Highs Ahead of New Year
THE DOUBTERS are stepping aside, at least until next year, and the bulls are beginning to wonder how high they can push the stock market before year's end.</br></br>After almost a month of soft performance, when some investors worried that the market had already peaked for the year, stocks resumed their rampage this past week, on the back of reassuring economic and profit data.</br></br>With the November consumer-price inflation numbers coming in virtually flat Friday -- a welcome surprise -- the Dow Jones Industrial Average pushed to a second consecutive record finish, its 20th record since October began. For the week, the Dow was up 138.03 points, or 1.1%, at 12445.52, including a gain of 28.76 points Friday. The Dow has risen 16.1% in 2006, with almost all that gain coming in a sharp climb since July 14.</br></br>The mood of the market was a tad euphoric, making some skeptics warn again that stocks have gotten ahead of themselves and are overdue for a pullback.</br></br>"Equities are overbought," said Bijal Shah, senior stock strategist for Societe Generale's Corporate & Investment Banking division, in a report entitled, "2007: A Correction or a Bear Market?"