TheTradingReport

One Indicator That’s Unquestionably Bullish

Many economic indicators are sending mixed signals, but one stalwart is coming through crystal clear.

And it suggests that U.S. stocks are poised for a strong showing in 2010.

The indicator I’m referring to is the oft-overlooked “Super Bowl Indicator,” which as has correctly predicted the direction of the Dow Jones Industrial Average in 34 of the past 43 years. That’s an enviable 79% success rate. And between 1967 and 1997, the indicator was correct 28 out of 31 times – a stunning 90% success rate.

Here’s how it works: If the team that wins has roots that extend back to the original National Football League, the stock market will have a good year. But if the victor was ever a member of the rival American Football League, expect the Dow to get sacked.

This year, the indicator will be bullish regardless of the game’s outcome, as both the Indianapolis Colts and New Orleans Saints can trace their origins back to the original NFL.

That was also true last year when the Pittsburgh Steelers faced off against the Arizona Cardinals. And the vaunted indicator did not disappoint:The Dow surged 1,912.5 points, or 22.5%, in 2009.

If you were forced to choose, however, you might root for the Colts who were founded in Baltimore in 1953 – 14 years ahead of the Saints. The Colts won four NFL championships (three NFL Championships in 1958, 1959, 1968; and Super Bowl V in 1971) while in Baltimore. Since moving to Indianapolis, they won Super Bowl XLI in 2007.

This will be the first Super Bowl appearance made by the Saints.

Money Morning

Your Guide to Financial Freedom

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# Over the next 25 years, America’s share of the worldwide economic pie will slip from 28% to 24%… # Even as Asia’s share almost doubles ;which means it will account for a whopping 55% of the global economy by 2030.

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And the Securities and Exchange Commission doesn’t help the everyday investor much either. The second sad fact is this: While you can buy any U.S. or Canadian stock you want, the SEC prohibits you from purchasing many of the available international stocks.

The reason: Foreign companies that haven’t registered with the SEC are off-limits to most U.S. individual investors.

And with Sarbanes-Oxley discouraging foreign firms from listing their shares on U.S. indexes, fast-growing companies from abroad have had little incentive to care!

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Good Investing,

Mike Ward

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3 Comments

  1. Correlation is NOT causation. I would not bet a dollar based on the SuperBowl theory.

  2. Are you suggesting that market is manipulated?

  3. Have no idea what you are smoking-whatever it is make sure it does not cloud your vision and affect your brain!!

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