Follow the Primary and Long-Term Trend/Cycles

The natural ebb and flow of the equity market as illustrated by the primary and long-term trend. Extreme readings on the downside tend to be following by extreme readings to the upside. Of course, there’s always the possibility that "it's different this time." Investment strategies based on that statement often precede trouble.

While the ‘easier’ entry point has passed for the stock market, it has yet to push into extreme territory.

Large Cap Stocks Total Return Index (LCSTRI) and Z Scores from Primary and Long Trend


Headline: 'Disappointed' by Fed, Still Bullish on Stocks: Birinyi

Laszlo Birinyi continues to be bullish on stocks although he told CNBC Wednesday he was "disappointed with some of the language and the tone" of Federal Reserve Chairman Ben Bernanke during the latter's press conference today.

The Fed's report, which slashed its forecast for economic growth while raising its unemployment forecast, was "not really a surprise," the president of Birinyi Associates said.

"We're still positive. We can always have corrections," he said. "We're in a long-term bull market, and just as we always do, we have periods where we slow down and stop."

In the same interview, Ken Fisher, chief executive of Fisher Investment, said he remains "not wildly optimistic" about this year.

Source: finance.yahoo.com