You have ripped off so many articles that you should have your own thread about it. Including the 2 today.
Here's an example posted by you today, Note the insertion of (Sarah Palin) to realize the extreme Birch goes to for respect.
The bad news for today was that the utility index blew out its bottom of the channel formation at 460 to end at 444. That's rather disconcerting. However, investors are always faced with intensely negative news and many times a crisis atmosphere which pushes stock prices temporarily lower - today qualifies in that regard. But, bull markets begin in the middle of all the bad news. The present cash levels in money funds is higher currently than the start of any bull market of the past 30 years - a little improvement in the news, (Sarah Palin), an end to the oil price spike and a shift in investor attitudes toward optimism will open the flood gates of money fund assets flowing back into stocks - I hope it doesn't start until next Monday. It's more important for me to have benefit of lower pricing in the C fund while I'm still working and not worry about a temporary devaluation of my account. Snort.
http://www.marketwatch.com/news/sto...4BBFD61F0322}&print=true&dist=printMidSection
PETER BRIMELOW
Phooey to the faint-hearted
Commentary: Martin Pring outlines technical support for optimism
By Peter Brimelow, MarketWatch
Last update: 12:01 a.m. EDT July 28, 2008NEW YORK (MarketWatch) -- Phooey to the faint-hearted few trying to be optimistic about Friday's narrowly positive close to another down week. Let's look at a really brave bull.
Pring.com's Martin Pring, author of the chartists' bible, "Technical Analysis Explained," has been snorting and stomping for some time in his various publications. On Wednesday, in a report released by his Pring Turner Capital Group money management arm, he said flat out: "Time to Be Optimistic."
Pring lists "Four Key Reasons to be Optimistic Today"
1. Low Consumer Confidence = Profits Ahead
2. Bull Markets Always Follow Bear Markets
3. Lower Oil Prices Ahead
4. Record Cash Levels on Sidelines
Pring is a technician and his reasons for reaching these conclusions are typically technical. For example, he plots the oil price on a log scale chart, revealing that its recent rate of change has been matched only twice in the last 120 years - both times followed by significant price declines.
Pring then makes the assumption underlying all technical analysis, that price patterns persist. He writes: "We think the most likely outcome will be a significant decline in oil to $100 or lower before the year is over. This positive surprise for investors will be a major catalyst for the next bull market lift-off."
Similarly, he charts the Conference Board Consumer Confidence Indicator over its 40-year history, noting that it's been approximately at its current low six times and that, "Each time, despite all the bad news, a new bull market for stocks began and significant stock market gains followed. We expect this seventh episode to end profitably as well."
Of course, it's theoretically possible that the past is not prologue and that the world really is coming to an end, or at any rate that things are going to get unprecedentedly nastier. But at least Pring's method put things in perspective.
Pring writes: "To add perspective to current market conditions, we have compiled information summarizing past bull and bear market cycles since 1960. Since then, there have been 11 bear markets with each followed by new long-term bull markets ... investors are always faced with intensely negative news and many times a 'crisis atmosphere' which pushes stock prices temporarily lower; second, bull markets begin in the middle of all the bad news. Historically the bull markets rewarded investors with gains on average exceeding 90%."
Pring then provides an impressionistic list of news items during each market cycle.
Of course, the problem with this is that bull markets don't always compensate for bear markets, as was the case for years after the 1929 and 1966 highs. Right now, stocks by some measures have made no gains in this decade. But again, Pring put things in perspective.
Pring's point about cash levels is not dependant on charts:
"Cash levels in money funds as a percent of the total value U.S. stocks equals a record high 27%!
This level is higher than the start of any bull market of the past 30 years. A little improvement in the news, an end to the oil price spike, and a shift in investor attitudes toward optimism will open the floodgates of money fund assets flowing back into stocks. A virtuous cycle can begin once again."
Looked at analytically, none of these points is conclusive. But they are suggestive. In the end, what Pring's subscribers are paying for is his instinct, developed over many years in the markets.
