It is a strange sight to see the Dow Industrials trading at 6,700. That’s still a level from 1997. And it still indicates that people don’t want to own stocks. At this point, it seems to be as much about available capital for investment as a willingness to invest. 

Valuations are low, the Dow is trading with a p/e of around 20. But that’s still not as low as it’s been during past recessions.

They say what doesn’t kill you makes you stronger. I keep that in mind as I watch the Dow Industrials repeatedly test the 8,000 support level. 

We’ve watched buyers continue to step in at the 8,000 range. That clearly makes this support level stronger. The recent sell-off at Bank of America (NYSE:BAC) failed to send the Dow below 8,000. Today, it’s GE’s (NYSE:GE) turn.

 

It’s been my contention that oil prices will remain range-bound for the foreseeable future. And the 60 Minutes story I relayed on Monday supports that belief. If oil’s move to $147 was based on more speculation (and manipulation), than it was on true supply and demand issues, then it’s going to be a while before enough demand returns to push oil prices significantly higher.