Thursday, November 30, 2006

another bearish statistic

havn´t heard of this indicator. but it makes sense and is one more idicator that the market is ....mot cheap.
but as long as liquidity is that high i think the markets can hang in ....

habe bisher von diesem indikator noch nie was gehört. das in verbindung mit anderen statistiken zeigt aber eindeutig das diser mark nicht ....billig ist. solange aber die liquidität weiter so hoch ist kann das ganze noch weiterlaufen.

dank geht an herb greenberg and kelly wright

Also heard today from Kelley Wright, managing editor of Investment Quality Trends. "While we generally don't engage in forcasting," he said, "there are some troubling trends we are seeing in our internals that we track at IQ Trends.

"First, since 1966, we have tracked the percentage of stocks that make up each of our categories of value; Undervalued, Rising Trends, etc. When the percentage of stocks in our universe that are Undervalued drops below 17%, it has been coincident with major market tops. Currently our Undervalued category represents about 10% of our universe.

"Secondly, the number of stocks that meet our Criteria for Select Blue chip status only totals 300 stocks; significantly off our long-term average of 350 stocks. In fact, the number of stocks that meet our quality parameters has been declining steadily since 2004.

"It will be interesting to see if either of these indicators change their recent trends."

Indeed it will. Thanks for sharing, Kelley.



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