The Dow Jones Industrial Average soared up 253.09 points this week, or 1.97 percent, to close at 13,075.66, crossing the psychologically-important 13,000 level for the first time since May 7 - Are we close to the start of Big Prolonged Bull Market ??

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There is great optimism that the Federal Reserve  may provide further stimulus to prop up the American Economy.

ECB is an abbreviation for: European Central Bank, the central bank for the Eurozone of the European Union. It seems very probable that the FED and the ECB are going to stimulate their economies.

Stocks may be climbing now the "Wall of Worry" that is necessary to surpass before the start of a Big Prolonged Bull Market. The Start of a Big Bull Market is not announced with trumpets weeks in advance, a big Bull Market starts suddenly without previous notice leaving many investors with their pants down invested in bonds and other assets that won't increase in value.

Conditions seem favorable for the start of a Big Bull Market, there is slow growth, home debts have been decreasing for many months, house values are almost touching bottom, corporations are making earnings and are sitting on big treasures of billions of accumulated dollars.

In case that I am right and we are watching a Big Bull Market in next months then this can greatly help the Obama reelection.

Source :
   
The Street
Dow Reclaims 13,000 on ECB Stimulus Hopes
By Andrea Tse
July 27, 2012

Dow Reclaims 13,000 on ECB Stimulus Hopes

Some excerpts :

NEW YORK (TheStreet) -- The Dow Jones Industrial Average shot past 13,000 Friday after eurozone leaders stepped up their pledges to preserve the single-currency bloc.

A day after ECB President Mario Draghi said he would do "whatever it takes" to hold the eurozone together, German Chancellor Angela Merkel and French President François Hollande issued a joint statement declaring their determination to do the same. In addition Bloomberg reported Draghi plans to meet with Bundesbank President Jens Weidmann in the next few days to discuss ECB bond purchases.

The risk-on euphoria was also boosted by growing chatter about the possibility of the Federal Reserve tipping its hand on additional stimulus measures at next week's policy meeting as well as a solid round of earnings reports and domestic data.

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"The words from several European leaders this week suggesting they will do 'whatever it takes' to save the euro and the region's economies has strongly-bolstered risk appetite," said Andrew Wilkinson, chief economic strategist at Miller Tabak.

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