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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (41922)	10/28/2008 12:00:44 AM
From: energyplay	Read Replies (1) \| Respond to of 217750

From page 4 of a Jeff Saut article in Minyanville - minyanville.com Note : Tuesday is a New Moon. Most New Moons have been big down days in this decline. ********************************************* Interestingly, as Doug Cass notes, “When all else fails, look to astrology. Panic lows have historically occurred on day 27 or 28 of the seventh lunar cycle, which are this Sunday and Monday (today). The panics of 1857, 1907, 1929, 1987, and 1997 all marked their lows on these days in October.” As for the investment account, in the current environment companies that have low debt, high free cash flow, stable revenue growth, strong cash reserves on the balance sheet, and dividend yields, should fare the best. As Richard Russell observed, “In a bear market, stocks that pay no dividends are at the complete mercy of the downtrend. As a dividend-paying stock declines, the yield on that stock increases, and if the dividend holds, the stock becomes more valuable. This is a critical point to understand if you are going to invest. Strong, dividend-paying stocks are better values as the stock declines. The corollary is that there is no more desirable stock than a stock that boasts a long record of increasing its dividend year after year. Studies show that dividends contributed as much as 50% of the total return on the S&P since WW II. The almost magical power of compounding can only be seen by holding stocks and reinvesting the dividends over the years.” The call for this week: Despite all of last week’s carnage, the SPX still couldn’t take out the “capitulation low” reading of 839.80 that occurred on October 10, 2008, although this morning it looks like it will be broken. If not, last week’s low was at 852.85 and could be construed as a test of the October 10th low. As Walter Deemer wrote last week, “Even in 1929, the worst stock market crash of all time, the market managed to make a final low 9 trading days after the 11.7% [capitulation low] record-volume decline and low of Tuesday, October 29th.” Click to enlarge Last Thursday was the ninth trading day after the recent October 10th record-volume decline and “capitulation low” reading. And then there is this Manny Friedman quote: “When the market wants to bet that the world is coming to an end, the safe bet is to take the other side and bet the world won’t come to an end. After all, what have you got to lose?”