Chart of the Week

Watch Out: Companies are Flooding the Market With Hundreds of  Billions of Dollars in New Shares.  For the last 10 years public companies  have been the major support for stock market prices by buying back stock and shrinking the market float. Logically, the less shares that are available, the more they are bid higher by…

This Stock Market Indicator Just Hit 20 Year Lows.  Greed is never a good sign in the stock market. Why?  Because the market has already reacted to so much good news. The chart below is the p/c ratio. It is a formula of puts and calls bought in the market place. It’s a typical fear…

Q Ratio Indicates Stock Market Value Historically is Overpriced.  We use many indicators to analyze stock market value and future trends. One such popular indicator is the Q Ratio. It was developed by Nobel Laureate James Tobin to estimate the fair market value of the stock market for the long term. The ratio is the…

Companies are Raising Their Earnings Outlook: Be Careful!  Spurred by pandemic fears many companies earlier this year pulled  way back on their profit outlooks. In fact, many said  they couldn’t make any predictions at all. In recent weeks, however, with an increase in business openings and employment, these companies,  and the analysts who follow them,…

It’s No Surprise Stock Market Analysts Have Been Upgrading Price Forecasts At just the Wrong Time.  In our view,  many Wall street analysts are about as reliable at forecasting stock prices and market direction as fortune tellers who use smoke, mirrors, and crystal balls to summon your long-dead great aunt. In fact, they are wrong…