Her Ladyship on NBR...she remains in the "very bullish" camp, just like Commander Bob...
Excerpt...
GARZARELLI: Well, we just went through a 3 to 5 percent correction, 5 percent intraday and 3 1/2 percent on a closing basis, so the market is ready to go up and is just looking for some good news.
KANGAS: Where do your 14 indicators for the market stand right now?
GARZARELLI: They stand at 83 percent, which is bullish, anything above 65 percent. And they were bearish throughout 2008 and turned bullish March 13 of 2009.
KANGAS: That was just four days after the absolute bottom in the Dow. That was a great call then. Is this a true bull market, Elaine or just a rally in a long-term bear market?
GARZARELLI: It's a cyclical bull market. And if you look at those markets, whether you're in a bear market long term or a bull market long term, the average gain for the market is about 150 percent for the S&P. We're up 50 percent now. So it's not out of line at all with what we can do. Now, based on my valuation work, I have a very good valuation for equities.
KANGAS: OK, well, do you think we'll see Dow 14,000 challenge the record high or the S&P 500?
GARZARELLI: Yeah. So far, we have $73 in earnings as an estimate for next year with a 17 1/2 P/E multiple gives us a 1300 level on the S&P 500. Could go higher but that would be based on 2011 and 2012 earnings. At this point I'm just basing it on next year's recovery, 4 percent GDP growth.
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