Comments on: What should we do?

By: Chris

Chris — Wed, 29 Oct 2008 12:43:52 +0000

Alex,
Cheap compared to what? What’s the basis? 2009 vs. 2008 or 2009 vs. 1978? High to one can mean low to another. It’s difficult to gauge. Follow the tape action.

By: alex west

alex west — Wed, 29 Oct 2008 12:17:26 +0000

..
low price/earnings ratios, and a great deal of pessimism because it means there’s an abundance of cash. – Martin Zweig – We currently have all of these conditions.
..
typical WALL street blubbering,….
sp500 PE for 2009 is about 18… not so cheap seems

By: Dawn Robinson

Dawn Robinson — Tue, 28 Oct 2008 22:19:51 +0000

Great analysis of the market. I’m hanging on your every word and thank you in advance for your guidance in these historic times where if we don’t blow it, we may be able to turn our finances around!

By: Ty

Ty — Tue, 28 Oct 2008 01:54:12 +0000

Hey Chris,

great post on the technical’s of the market! My family and friends are patiently waiting in cash (well, I took a few small positions…) for the right time. For the first time in a long time Im looking at value and not just technical’s, it feels strange…

We will be following your posts intently!

By: Chris

Chris — Mon, 27 Oct 2008 20:41:40 +0000

greg,
He’s just saying a 2-to-1 ratio for 10 consecutive days. Has happened less than two dozen times throughout history (very rare).

By: Greg Feirman

Greg Feirman — Mon, 27 Oct 2008 16:45:42 +0000

Superb review of the technicals. I’m seeing things the same way.

One question. This sentence confused me:

“Zweig uses the example of the rare event of a 10 day A/D ratio of two or more (2-to-1).”

What exactly does “of two or more” mean? I know what a 10 to 1 A/D day is but I’m not sure what this 2 to 1 means.

Thank You.