The Dow is back above 12,000

[Alan Mendelson]

Wow. While we had some selling in September, we didn't have the "September slaughter" that follows the historical trend that September is the worst month of the year to hold stocks.

While October isn't over yet, it is hard to imagine that we will have another "October Massacre" with the Dow today rising above 12,000 and only a couple of trading days left in the month.

And, add in these points to the mix:

1. On a momentum basis, there is more upside coming

2. Stocks tend to rally on the last trading day of the month as new money enters the market through contributions to pension and investment plans

And, if the stock market can do well during the months when it is supposed to do badly, imagine how well it can do when the market is supposed to do well -- like with a year-end or Santa Claus rally?

Does this mean a Merry Christmas for Wall Street and Main Street? Remember the belief that stocks are a leading indicator and what happens on Wall Street today affects Main Street in six months.

[Alan Mendelson]

Well, here we are on the first day of November, and it doesn't look like a merry year end rally is coming for Wall Street. Remember the old saying that one day does not make a trend.

Well, the last day of October was a winner either, so perhaps that means two days do not make a trend?

I'm looking for some opinions here, folks. Fire away.