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The belief in some circles is the January lows represent the bottom of the financial markets, and that Mr. Market has discounted all of the possible outcomes of the banking and housing meltdowns, the commodities spike, the decline of the dollar, the fading expectations of recession, etc., etc.

This belief was bolstered when the February retracement of the relief rally failed to put in a lower low. As the markets rallied from March into April, converts to this belief grew on a daily basis until the Dow crossed 13,000 and ran into the brick wall that is the crude oil market.

When crude prices vaulted past $120 per barrel, the markets eased off the pedal (no

pun intended) and retreated into a trading range, with Dow 12,600 representing the bottom of the range. When crude passed $130 per barrel, the bottom end of the trading range fell apart like a cheap suit and the Dow declined to the 12,450 range just prior to the long Memorial Day weekend.

When trading commenced again the following Tuesday, the market rallied, as is typical after a holiday, on the old standby of "favorable economic news," which consisted in part of a decline below $130 per barrel in crude oil. Wednesday morning greeted traders with reports of "unfavorable economic news," which resulted in the 10-year Treasury moving past 4%, the auction of two-year notes garnering 2.62% (the highest since January), and crude oil trading above $130 again.

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Stocks, as one might guess, seesawed between positive and negative territory all day with neither side of the trade being able to sustain control.

Don't play the news game

The point of this missive is to reiterate there is "economic news" everyday that traders react to with buying and selling decisions, resulting in stock and commodity prices fluctuating everyday. So what else is new?With the vast amount of financial content on the airwaves, the Internet and myriad publications, it is easy to get overwhelmed and numbed by indecision, which my partner Mike calls "paralysis by analysis."

If you try to play this game, it will eat you alive, so don't play -- think!

The value of a stock is its dividend stream. High quality stocks fluctuate between extremes of low-price/high-yield and high-price/low-yield. When you buy a high quality stock at its low-price/high-yield extreme, you are buying its dividend stream when the downside risk is at a minimum and the upside potential is at the maximum.

So what if it doesn't move higher tomorrow, next week or next month? The value is there and eventually it will be recognized, and in the interim you will realize dividend increases that will result in increased value.

The price is right

Not too very long ago, there were only 19 or so stocks in our "undervalued" category. As of mid-May there were 86, many of which were A-rated or greater by S&P and have our IQ Trends "G" ranking for outstanding dividend growth on an annual basis.

I look at what we call our Timely Ten – definite buy candidates -- and say "are you kidding me?" General Electric (GE, news, msgs), McDonald's (MCD, news, msgs), Johnson & Johnson (JNJ, news, msgs), Colgate Palmolive (CL, news, msgs), PepsiCo (PEP, news, msgs), Procter & Gamble (PG, news, msgs) and Coca-Cola (KO, news, msgs) all priced right at the same time?

No one, not you or I or anyone, knows for sure what the markets will do over the short-term. What I do know is that the companies above will continue to do what they have always done: make money and share part of the profit with their shareholders. That, along with the dividends, you can take to the bank.