Wednesday, December 19, 2007

Brinker's Long-in-the-Tooth Buying Opportunity

So far, Brinker has been correct that a 20% bear market has not happened. However, those who bought into the stock market last August when he issued his "mid-1400's" buy signal have needed great patience if they are waiting for his July prediction of 1600's range to develop.
In July, 2007 Marketimer, Bob Brinker predicted a "move into the S&P 500 Index 1600's range as we move forward....."
In August, 2007 Bob Brinker said: "We rate the stock market as attractive for purchase on weakness that occurs in the area of the S&P 500 Index mid-1400's. Above that level, we recommend a dollar-cost- average approach."
Brinker repeated the "mid-1400's" buy signal in September, October, November and December.



Kirk said...

Thanks for the summary of how long Brinker has liked mid 1400's for a lump sum "gift horse" buy level.

I had to go back and look at the charts here to see we started the year in the mid 1400's for the S&P500 and we've been in the 1500's three times this year with three trips below 1400 also!

It is no wonder so many "reluctant bulls" are losing patience. They need to keep the faith! (I hope!)

Brinker's QQQQ (chart) has done much better this year, but it was starting so deep in the hole it has a long way to go to get back to 2000 levels. I like how it has followed the 200 day moving average for support on that chart. Large cap technology stocks in QQQQ have been market leaders since it last dipped below the 200 DMA in mid 2006.

Honeybee said...

Thank you for the charts and your comments, Kirk.

Unless the market gets on a real tear very soon, we may end the year very close to where we started.

Perhaps Bob Brinker has been more bullish than was called for --especially in light of the fact that he even declared that the market was no longer in a secular bear megatrend.