Tom: On Saturday, reciting a raft of statistics, Brinker catalogued
the historical case for buying opportunities presented in election
years in the middle of a presidential term (as is A.D. 1998).
Brinker concluded, "Off presidential election years have, almost with
scary regularity, produced buying opportunities. It's my contention
that that (the recent market correction) is what we just saw; that we
have now established benchmark areas of the low, as I have defined
earlier, and if I am right about my projections on this, then King Ralph,
king of the bears(who issued a bear market sell signal this week at
DJIA 8487), is going to be eating crow down the road."
During the course of Saturday's colorful and crucial broadcast,
Brinker reminded us that he thought the market would be testing
the benchmark lows established this past week. To wit, "Once we
get through any residual testing of the benchmark lows, I would
say that we are going to new highs in the months ahead following
that, and I would expect that means the Dow(DJIA) is going to go
above 9500, and that the S&P 500 is going well above 1200, and
the Nasdaq is going above its old high of 2014, as well.... From
my point of view, I think we are in really good shape. One of the
things I like about this short term correction is that it was so badly
needed.... The Nervous Nellies have to be shaken out. The people
who don't even know what they own, they buy stocks because they
are guaranteed 30 per cent a year, or so they think, the new era
thinkers, the new paradigmers-- these people had to be shaken
out. It's like shaking a tree and watching the rotten apples fall
out."
Brinker then opined that the market would likely undergo "some
testing (of the recent lows) during the month of August" rather
than fashion a "V-shaped" snapback. |
