The Dow Jones Industrial Average (DJIA) is currently trading at 10,946.  Only 54 points away from 11,000.  This is the highest the market has been since September 29, 2008.  Proving once again that it is very difficult to predict market movement and having a long-term strategy in place in essential.

According to the WSJ article, headline reasons include:

• Mr. Bernanke said the economy “continues to require the support of accomodative monetary policies,”
• Dollar weakened against the Euro on news that European Central Bank will lend against Greek bonds next year
• Dubai’s government will aide the real estate development company Dubai World with its huge debt
• Lower claims for jobless benefits in the US

The Dow’s gains extend a steady rally that has seen blue chips gain 5.9% so far this month and nearly 5% this year. The move, driven in large part by increased optimism about the economy, has lifted the Dow some 41% from a year ago, while small cap stocks have climbed even more.

The strength in the financial sector came as Mr. Bernanke said the economy “continues to require the support of accomodative monetary policies,” according to a prepared text of his testimony at a hearing before the House Financial Services Committee. Investors said the testimony was reassuring.

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