Dow Even Higher

Dow Sets Another Record
As 12000 Level Nears,Gut Check for Bears;'Yesterday's Trade'
October 13, 2006 11:57 p.m.

There's little question a shift has taken place on Wall Street in recent weeks. The bears are on their heels.
Only a few months ago, many market watchers were forecasting sharp declines for stocks. A sagging housing market, record-high oil prices and an implacable Federal Reserve on a mission to crush inflation with higher rates made the bearish argument for stocks convincing.
A lot has changed.
A gauge of the shift -- as well as a catalyst -- has been the record-setting run by the Dow Jones Industrial Average, which cracked its all-time high last week and set several more records this week. The Dow finished higher again on Friday, gaining 12.81 points to 11960.41, another record that put it closer to the 12000 level. The blue-chip average gained 110.30 points this week, leaving it up 11.6% for the year.
The Standard & Poor's 500-stock index gained 2.78 to 1365.61 Friday, putting it up 9.4% for the year, and the Nasdaq added 11.11 to 2357.29, up 6.9% year-to-date.
More and more investors are growing upbeat about the market. And as stocks continue to advance, bearish portfolio managers, often measured against one of the major benchmark indexes, are being dragged into the market, sometimes almost against the will.
"People are feeling like they have to be fully invested because they're all being measured against their peers," said Michael Panzner, vice president in sales trading at Collins Stewart.
Mr. Panzner, a self-professed bear, admits the rally has confounded his expectations for a sharp downturn.

-By SCOTT PATTERSON - WSJ