Does Dow 11,000 Matter?

Bill Cara asks the same question over on his site today and he gives a great technical perspective.

My answer is a little different as I tend to write about different things than Bill. My take is it does not matter. I am spectacularly wrong, so far, about what 2006 will mean for stocks (I am being sarcastic as it is too early for anyone to be right or wrong about 2006 yet).

There has not been any evidence of stocks rolling over in several months. I try to be very clear in every post that I write about market direction that I do not try to outsmart or outguess big market shifts and the current lift we have seen so far this year is exactly why.

Despite being surprised by the lift I am capturing it for clients and that is what matters.

This directly applies to do-it-yourselfers. 3% or 4% in a week does not happen very often (of course it may not stick, I don't know). No matter what the market should do you need some exposure (this is a repeating theme). At some point in the future when I might be at my most defensive position I will never be 0% US equities. Neither should you.