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Post by jeffolie on Nov 6, 2013 12:34:10 GMT -6
Is infinity Ben & QE programs making the Q-Ratio useless? Doug Short created the upper left chart on the Q-ratio and updates it on a regular basis. See latest "Q-Ratio" update and detail of this ratio (HERE) Being a student of Sir John Templeton, I have to look at some fundamental valuations every once in a while, especially when they are hitting extremes. The above chart reflects that the Q-Ratio is 60% below the highs reached in late 1990's. If you happen to exclude the 1990's time frame, the Q-ratio is now within 10% of the highest valuations reached in the past 100 years, where the Dow found it tough sledding going forward. 6 months ago, I shared that "Infinity Ben" could push the Dow to 16,000 (see here) We are now less than 1.75% away from that target, which is the crossroads of resistance at (2) above! Has Infinity Ben & QE programs made the "Q-ratio" useless? I don't think so! From a technical analysis angle the following seems to be important in my humble opinion... Resistance is Resistance until broken! Should buyers push the Dow past 16,000, we would have a positive unique breakout on our hands! blog.kimblechartingsolutions.com/
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Post by jeffolie on Nov 6, 2013 12:39:14 GMT -6
CBOE Volatility Index MDE: VIX Nov 6, 2013 Day low 12.77
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Post by jeffolie on Nov 6, 2013 13:35:05 GMT -6
"Markets Can Stay Irrational Longer Than Investors Can Stay Solvent" John Maynard Keynes
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Post by jeffolie on Nov 6, 2013 16:12:14 GMT -6
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