Tags: Hulbert | Bull | Market | stocks

Stock Pundit Hulbert Sees Bull Market Dead Ahead

Thursday, 20 Oct 2011 08:15 AM

A market sentiment indicator developed in the 1970s that has a long record of predicting bull markets is at it again — pointing to much higher stock prices to come, says stock market pundit and publisher Mark Hulbert.

Called the High Low Logic Index, it follows new 52-week lows. It was developed by econometrician Norman Fosback. A version of the index is published these days by Ned Davis Research.

The index follows how many new lows are put in by individual stocks, Hulbert explains. When the index reads lower than 2.5 percent, the S&P 500 has gone on to put on 17.9 percent. (When too high, the market has fallen by double digits.)
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Right now, Hulbert writes in his MarketWatch column, the index is at 1.7 percent, indicating a strongly bullish trend.

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(Associated Press photo)
“In fact, there have been only four other occasions over the last 25 years in which the Ned Davis Research version of the High Low Logic Index has moved from bearish territory above 4.05 percent to as low as it is today, and all four came close to a major market bottom: Late 1987, late 1990, early 2003, and late 2008,” Hulbert notes.

Hedge fund figure Leon Cooperman, too, is out pounding the podiums for stocks.

He recently told an audience in New York he “wouldn’t be caught dead owning a U.S. government bond” and that stocks were cheap right now, according to a Bloomberg report.

"Stocks are cheap relative to history, relative to inflation, relative to interest rates," said Cooperman, a former Goldman Sachs CEO and founder of Omega Advisers.

"The recent facts suggest the economy is accelerating moderately."

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A market sentiment indicator developed in the 1970s that has a long record of predicting bull markets is at it again pointing to much higher stock prices to come, says stock market pundit and publisher Mark Hulbert. Called the High Low Logic Index, it follows new 52-week...
Hulbert,Bull,Market,stocks
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2011-15-20
Thursday, 20 Oct 2011 08:15 AM
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