TA Legend Martin Pring turns Bullish on US Equities

Jul 30, 2008: 10:46 AM CST

Martin Pring, one of the most well-known and respected market technicians of our time, recently published a brief quarterly report which outlined his case for renewed, current optimism on the US Equity Market.

Entitled “Time to be Bullish” (link opens as a .pdf file), Martin outlines the four major reasons why he believes – from his detailed analysis – that a potential new bull market is underway for the stock market.

A little background – Pring teaches that markets travel in cycles, such that the Bond Market will lead the Stock Market, which then leads the Commodity market.  The economy itself is a coincident indicator to the commodity markets, and the bond and stock markets anticipate economic conditions in the future, and thus lead the economy.  As such, he now believes that the bond and stock markets have already priced in (anticipated) the negative news we are seeing currently and are (potentially) preparing themselves to discount this news and rally.

Pring lists the following four reasons “to be optimistic today”:

1.  Low Consumer Confidence equals Profits Ahead
2.  Bull Markets Always Follow Bear Markets
3.  Lower Oil Prices [are] Ahead
4.  Record Cash Levels on the Sidelines

Many of those premises may be hard to accept in the current environment, and Mr. Pring is indeed making bold statements, but let us not forget how many years of experience and how many economic cycles he has studied and lived through.  Let us also not forget that he authored the seminal ‘textbook’ Technical Analysis Explained, which is required reading for Levels I and II of the Chartered Market Technican’s educational materials for the examination.

The entire article is only four pages long, and you can peruse further quarterly statements by the Pring/Turner Investment Group at their “Quarterly Newsletters” page (all of which are in .pdf format).

For deeper analytical research, you may view Martin’s lengthy free movie report “Why Commodity Prices are in the Process of Peaking” at his personal website.  I have met and attended three conferences with Martin and can attest to his depth of knowledge of financial and economic markets – when he speaks, it is often a great idea to listen or at least take his research into serious consideration.

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