(1) Market Valuation: 4 main measures of market valuation is signalling markets are overvalued
Shiller PE ratio for the S&P 500. A well-known measure of market valuation. It is based on average inflation-adjusted earnings from the previous 10 years, known as the Cyclically Adjusted PE Ratio. The Ratio currently stands around 25, more than 50% above its mean(average).
The Q Ratio is another popular method of estimating the fair value of the stock market. The Q Ratio is the total price of the market divided by the replacement cost of all its companies. It currently stands around 1.09 , 59% above its mean of 0.68
Crestmont P/E ratio at 27.3 . 96% above its average
The Buffet Indicator: Market Cap to GDP
The indicator remains over 2 standard deviations above its mean, currently around 128%.
(2)Risk-off Environment
Junk bonds which are a great measure of market sentiment has been lagging in recent months, and breaking down.
Technical Breakdown
(3)Long term rising channel was taken
(4)12-month average was taken
(5)Bearish divergence on momentum
To be continued...
My best regards
Technician
Subscribe to my trading portal thefxchannel.com
Shiller PE ratio for the S&P 500. A well-known measure of market valuation. It is based on average inflation-adjusted earnings from the previous 10 years, known as the Cyclically Adjusted PE Ratio. The Ratio currently stands around 25, more than 50% above its mean(average).
The Q Ratio is another popular method of estimating the fair value of the stock market. The Q Ratio is the total price of the market divided by the replacement cost of all its companies. It currently stands around 1.09 , 59% above its mean of 0.68
Crestmont P/E ratio at 27.3 . 96% above its average
The Buffet Indicator: Market Cap to GDP
The indicator remains over 2 standard deviations above its mean, currently around 128%.
(2)Risk-off Environment
Junk bonds which are a great measure of market sentiment has been lagging in recent months, and breaking down.
Technical Breakdown
(3)Long term rising channel was taken
(4)12-month average was taken
(5)Bearish divergence on momentum
To be continued...
My best regards
Technician
Subscribe to my trading portal thefxchannel.com
