Bob Brinker's September newsletter...
Here's the latest from BobBrinker's September Marketimer released yesterday.
It is perhaps the most bullish commentary I've seen since the August 2004 lows.
He says that his stock market timing model is currently in highly favorable territory.
He outlines the major corrections we have had each year since the 2003 lows, and describes each one as necessary to restore the market's health and prepare for the next advance.
Also says that the recent high volatility is a "hallmark" of bull market intermediate bottoms, reflecting high anxiety and overly negative news in the financial press. Describes the recent bottom as "textbook" in the level of fear and the associated volatility.
Then describes the "extraordinary" technical readings recorded at the recent lows:
10-day put/call ratio of 1.31 on Aug. 6 was within a hairsbreadth of a new world record.
10-day put/call ratio closed over 1.10 on 19 consecutive days through August 17, which is the longest such streak in history.
60-day put/call ratio recorded a new all-time record high of 1.075 in August.
BobBrinker's own proprietary sentiment index recorded a new, lifetime, historic high in August, higher than any other reading since 1982.
Reiterates again that there is very little chance of the market entering a cyclical bear phase anytime during this year. Expects the market to reach new record highs, into the mid 1600 range sometime next year.
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Furthermore, the 10-year Treasury yields continue to collapse, and they remain at levels which are well below the 1994 - 1998 levels when the stock market recorded its historic run. The 10-year yield averaged about 6%, and reached a high of 8% during that period. Only for a brief moment in time did the 10-year yield dip below today's level, and that was during the 1998 LTCM panic.
During the most spectacular run from the October 1998 lows to the January 2000 highs, the 10-year yield increased 280 basis points, until BobBrinker issued his sell signal in the 2nd week of January 2000. Of course, the Nasdaq kept blowing off into the March 2000 highs.
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