DOW 40,000 BY 2008!:

Got your attention? This was about the only wrong call by Harry S. Dent in his 1999 book, The Roaring 2000s Investor. His extensive research on birthrate demographics as they correlate to markets is quite informative. Although Bob Prechter goes the other way in his prediction (triple-digit DJIA), both agree on the miserable outlook for the next decade, as 80 million boomers retire, sell their houses to downsize and relocate.
For the short term things look equally ugly, but anyone shorting this market must be nimble, as shortcovering rallies can be sharp and fierce. In a normal environment, many indicators are at extremes: the CBOE put/call ratio is at a high of 90( after the 92 in January); the McClellan Oscillator extended at -65. Although the surveys do not reflect the entire week, the AAII bull/bear ratio was also extended at 22 to 51, respectively; the Bullish Per Cent, although whipsawed off of a faux Buy signal, is at a lowly 28% of stocks on a buy signal .
Thanks to input by a reader, I've learned that UBS has stopped publishing its monthly investor confidence, which is now deleted from the following numbers:
MktSentiment. 3/7/2008 Last Week..... .5Yr.HI...... LOW

DJIA ………. 11893………12266………..14093..............7286
Nasdaq………. 2212………..2271…………2810.............1114
S&P500…….. 1293………..1330…………1561………..776
CBOE Eq. put/call …90………….80……………..92-1/08…..........46-1/03

VIX ………. 27.5………..26.5…….…….44.. 9/02 bu........10.0-7/05 br
Intrade.com-
Recession% 73…………..60……………75(bullish)….31(bearish)
McClellan Osc………-65………..-31……………91-5/04 br......(81)-5/04bu
McClelSum………-217…………..10…………..1568-6/03.......-917

Newsletter Surveys:
Inv.Intel -Bull:…..…41.9………….42………..62.9-12/04br......35-6/06bu
Bear:………… 36.6…………36.4………… 38.2-3/03.......16-6/03

AAII-Bull/Bear ……22/51.7……….34.3/45.3……..n/a n/a
MarketVane Bulls…42……………48…………. 74br..............24bu
IBD: Short Interest- …10.1……….9.12……………10.3………. 4.0
Public/NYSE Spec.-…12.7………..12.7……….21bl…………..1.0br
Birinyi Blogger
Bull/Bear Poll ………38/43………26/52
Bullish%- …………28sell…………38……….…88 -2/04br.....19bu
*Insider corporate sellers..13…………8………..97…………..5
Sectors: Most Buyers: Finance (1/3 of total)
Most Sellers: Energy, Healthcare

With record numbers of dollars coming out of Money Market Funds, mostly into the crowded trade of short term bonds, anyone who has a minimal knowledge of covered call options and/or an interest in hedging stock market exposure might want to check out: brentleonard.com for an alternative strategy that is low-risk as well as highly rewarding. For those of you wanting more details and actual trading results, a new book is available for $14.95 at Amazon.com: Zero (IN)Tolerance

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DOW 40,000 BY 2008!: