When having an insight bas in March any investor can recall that it was unbelievable to hear that the DJIA can close the year at 12,000. The Dow Jones at that time hit its low of this year 2009 getting below 6,600. The market is up 60% since then and trades at nearly 10,500.

Another 14% jump puts the index at 12,000. At the rate the market has moved up over the last month, it could reach that level easily. The market might experience some consolidation as for today’s trading the December Dow Jones - the most traded contract - is trading around 10480 with a high of 10495 and a low 10445.

There are a number of factors that could push the market higher by 2% or more on any given day in December. The first among those would be a November jobs reports that shows that the economy is losing very few jobs. That would support the theory that the recession is long over and that the employment market, which almost always lags GDP, is beginning to catch up.

Housing figures have been good for several months aligned with manufacturing numbers. It remains to be seen if those positive trends will continue. The market could look at corporate financial transactions more closely than near-term macroeconomic numbers. Companies that are willing to buy other companies, borrow money, or risk the IPO markets are signs that the world of corporate management is willing to bet that 2010 will be a strong enough year to support earnings.

Much has been said about investors overreacting last week, volumes being low on the Friday after Thanksgiving, etc. But the fact is that after the run we’ve experienced, many investors have their stop loss orders in place. Any hint of more debt problems will cause a rush for the exits.

This doesn’t mean stocks and bonds won’t keep pushing further ahead through the end of this year. Hedge fund managers and mutual fund managers all want their performance numbers to be as good as possible when the year ends.

The DJIA moved from 10,600 to 12,800 between July 2006 and February 2007. There was not an extraordinary recovery going on in the economy then. There could be one happening now. Any strong evidence to support impressive growth predictions sends the market to its highs.