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In early 1988, we established a major position in the Environmental stocks. If anything, this conceptual theme seems a stronger idea now than ever. Even though the Ecology Index tracked below is up dramatically in the last 10 years, we believe it is not too late to get into the Ecology stocks.

Last month we presented this original indicator of earnings momentum. At that time, we commented that our quarterly reporting periods might be warped and perhaps misleading. This month we have readjusted the quarterly reporting periods so they now better track the traditional calendar quarters.

With at least some preliminary signs the economy is slowing, accompanied by more comforting PPI and CPI numbers, it would appear the Fed is relaxing a bit.

Benchmarks Mailed to All Clients in Late March...Hall Of Famer “Sedge” Coppock...MTA Annual Seminar May 19-21, Naples, Florida...New Zealand Update...Precious Metals Update

March market action surprised many observers. The market recorded a gain for the month. To many it had appeared an intermediate correction (or worse) was underway. But instead of breaking the February lows, the stock market bounced.

A performance run down for our equity market sectors ranked by March performance.

In the fall of 1988, this publication detailed a very reliable long-term stock market indicator we call VLT momentum. Herein, we present the record tracking back to 1897, employing average monthly prices in the calculation rather than month end prices.

Will the current earnings momentum be maintained in the upcoming months? Even considering the limited history of this study, the current trend would seem to be quite favorable for 1989’s first quarter and perhaps the second quarter.

In mid-March, the bond market was jolted by a nasty PPI number and spent the rest of the month creeping back to pre-PPI release levels. The net result was an unchanged to slightly higher bond market in March.

Our Budget Deficit Fears Have Increased…Update on New Zealand Stock Market...Another Aussie Bond Opportunity?

We apologize for the unanticipated Benchmarks delay. In the meantime, per client requests, here are updated histograms for our primary stock market value benchmarks, including commentary. We are pleased that so many of our clients really do use this work.

Did February mark the beginning of a 7%-10% intermediate stock market correction? I don’t think so. The market gave up some ground last month, but not much and it caused very little deterioration in our indicators.

A performance run down for our equity market sectors ranked by February performance.

David Burnett from the Russell organization has provided us with additional information on the index, its current construction and how it might be further modified.

The most recent rise in the discount rate triggered the “Three Steps and Stumble” rule. Years ago, Edson Gould popularized this theory. In effect, it is based on the assumption that tight credit ultimately terminates a bull market.

In February, stocks and bonds tracked the same course. The CRB Index came down significantly in February and was close to breaking down before a late month surge. The JOC Index remains above its January breakout level.

Each year, along about this time, this publication (with help from our readers) makes a series of “Fearless Forecasts” - frivolous flights of foolishness and fantasy.

The Investment Case for New Zealand Special Study...BenchMarks Is (Finally) Coming...Social Security or Insecurity...Golden Fleece Awards...Copper Traders Anonymous

After a 300-point move in the DJIA in a little over two months, a number of observers view the market as “overbought”. However, we see no significant evidence among our indicators that supports this opinion.

For the month of January, the S&P 500 gained 7.1% and the DJIA was up 8%. The Russell 2000, a good measure of secondary stocks, gained a lagging 4.4%. Not much beat the DJIA in January.