The housing market has been the major subject of conversation with its collapse. It seems the home sales and prices in almost all areas are going to Hell in a hand basket.

Economists are preaching the demise of the dollar. Those who know my opinion of economists know that isn’t worth smoke.

Even gold, the ultimate true wealth that everyone should own, has not been performing well.

The savings rate of the American consumer is close to zero and many say it is negative. People have no money for backup yet they keep spending themselves into a deeper hole.

Banks are tightening rules for lending. Mortgage companies are requiring borrowers to tell the truth on their applications which they have not been doing for the past couple of years. This will eliminate many from being buyers. Foreclosures are close to an all-time high.

Is there any good news?

The Federal Reserve has not raised interest rates and they have been creating more and more money to flood the banks so they will be able to lend easily. (But they can’t.)

I am bullish. Am I nuts?

Because I am a technical analyst and not a fundamental analyst I see more reasons for the stock market to continue on to new highs for the year, but I don’t know how high or when the top will be reached. The market will tell me when it gets there.

What is amazing at this moment in time is that all the bad news of housing, no reduction in Fed interest rate, massive consumer debt and poor earnings reports by major companies has not been able to deep six the DOW or the S&P500 or any other major index.

When everyone thinks the same way it shows there isn’t much thinking going on. When so many have been scared out of their equity positions it is time for the contrarian thinkers to be buyers. When investors run with the crowd they become a lemming headed for the cliff.

If investors analyzed the market action in relation to the news it actually shows that there are strong buyers willing to take everything the little guy throws at them.

This market says that the news is not that bad. Now is the time to be a buyer. Listen to the voice of the market and not the talking heads.

2007 looks darn good to me.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved.

Copyright 2007 Albert W. Thomas All rights reserved. Author of "IF IT DOESN'T GO UP, DON'T BUY IT!"