Edited by marketneutral, 11 June 2009 - 06:03 AM.
Is the mkt overvalued
Started by
VolPivots
, Jun 11 2009 05:59 AM
No replies to this topic
#1
Posted 11 June 2009 - 05:59 AM
maybe in aggregate, but there's a lot of cheap stocks out there. here's the performance well diversified 19-stock basket of small and mid caps w/ an average P/E around 6 vs. 12.3 for the SPX, p/sales of .35 vs. .87 for the SPX, volatility about 2x the spx, beta 1.54 and div yield of 3.6 vs 2.4. i call it the 100d breakout based on an old observation that stocks trading > then they were 100 days ago are in a bull trend. pullbacks have been light and it remains in meltup mode.....30% return vs 10% for the SPX since inception
i will note that from an elliott perspective, I can now count 2 5wave impulses and a potential ab=cd....no hard calcs, just a visual observation coincident to a 29d high-high moon phase cycle......