This was submitted by member SteveT. THANKS STEVE!

I am impressed with a stock market that seems to find reasons to continue the upward trend of the past two months despite news that would normally give it reason to consolidate. It is beginning to look like the odds are tilting in favor an economy making a transition to sustainable growth without excessive inflation.

Let’s take a look at how Bob Brinker maybe interpreting his stock market timing model.

*Valuation:*
Last month Bob projected 2007 S&P 500 earnings of $87.75 and a S&P target of 1400 to 1450 next year. At the Tuesday close of 1377.94 we get a P/E of 15.7 This is certainly causes no concern of overvaluation. Going forward we are going to have to closely monitor earnings and see if a slowing economy could disrupt the earnings momentum we’ve enjoyed. For now valuation is *bullish*.

*Monetary:*
The most recent M-2 shows year over year nominal growth of 4.44%. Subtracting the latest CPI of 2.1% makes a noticeable difference in the real seasonally adjusted M-2 growth, coming in at 2.34%. The next CPI should give a easier YoY comparison so we shall look to that report on November 16^th . We are hopeful real money supply growth can encourage the economy to pickup the pace and create enough new jobs without causing inflation to over heat. I am going to rate Monetary policy as *neutral* for now.

*Economic Cycle:*
The advanced 3rd Quarter GDP came in at an unexpectedly low 1.6%, leaving no doubt the housing bubble has been deflated. The report gave inflation hawks something to hang their hats on. The inflation component, PCE showed some decline from the 2^nd Quarter final report. Please remember there are going to be two more revisions before the year ends. This month I am going to maintain by belief the economic cycle component is *bullish*. I will be closely following the GDP revision of November 29^th and the Jobs report November 3^rd .

*Sentiment:*
The Investors Intelligence survey ratio of bulls/(bulls+bears) has been inching up since Labor day. The current four-week moving average is 62.53%. This is still in neutral territory. The Put/call ratio 60-day average is .97, while the 10-day average is .94. This is showing plenty of pessimism. I am sure Bob views this as *bullish.*

In summary I believe Bob Brinker’s timing model is still bullish with three indicators bullish and one neutral.