The Rubber Band of the Market is Stretched Too Far

By John Del Vecchio and Brad Lamensdorf This week’s Chart of the Week dovetails with our analysis of Warren Buffet’s favorite indicator and shows that market valuations are in the nosebleed section. The chart below is courtesy of Advisor Perspectives and Crestmont. As the chart shows, the price / earnings ratio is over three standard…

Odds Favor Short-Term Bounce before Hitting a Ceiling

By John Del Vecchio and Brad Lamensdorf The market got very oversold last week. Just like a rubber band being stretched too far in one direction, it will snapback hard when the energy is released. Markets often operate the same way. Below is the TIR Indicator which measures short-term overbought or oversold conditions. The TIR…