Market Insights™

Market Insights is a free market newsletter
posted weekly every Sunday

CURRENT PORTFOLIO ALLOCATION

(FOR GROWTH PORTION OF PORTFOLIO)

Retirement Portfolio Trading Portfolio

25% Stocks / 75% Cash / 0% Short / 0% Gold 25% Stocks / 75% Cash / 0% Short

How much growth is right for you?

January 2009

Week Beginning 01/04

The trading range was finally broken as the stock market advanced higher this past week. My target for this rally is now 1030 for the S&P 500. The longer view is beginning to take shape and I will lay out a preview (subject to change, of course) for the upcoming legs of the bear market.

I suspect that the rally will last another two weeks or so followed by a retest of the November low about eight weeks after that. That should take stocks to a low in mid to late March. Look for a significant rally from there up to around 1100 on the S&P in mid to late July after which stocks should decline to deep new lows for about two years.

"Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one."
-- Charles Mackay in Extraordinary Popular Delusions and the Madness Of Crowds

Stock Market Timing Indicators
Secular Indicator	Bearish
Composite Cyclical Indicator	Bullish

Other Timing Indicators
Economy	Negative
Gold	Positive

Adjusted Money Supply
RPCM2

Next Bradley Turn
January 21, 2008	Late January 2008

Week Beginning 01/11

Week Beginning 01/25

Week Beginning 01/18

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