By Scott Ronalds

From our Quarterly Report:

“The Dow hit a new high. How much further can the market go? … Alcoa is the first major corporation to report quarterly earnings and will set the tone for what’s to come … the technical indicators are telling us … time for a pullback … the next bull market starts in …”

The only time I watch business television is when I’m travelling and unfortunately, I’ve been on the road a lot lately. I listen to this stuff and it drives me crazy (ask Lori). I find myself talking to the screen, even screaming at it sometimes.

What about the Dow? It’s a ridiculous index to begin with and the new high was overdue. The previous one was getting old (6 years). If the market goes up 20% over the next 3 years (a reasonable expectation), the Dow could hit 80 new highs. And are you kidding me? A highly cyclical aluminum producer is going to tell us anything about the ability of Cisco, CN Rail or BMO to generate long-term profits?

Read Tom's full brief and the rest of our report here.