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IDS World Markets Fri 2nd September 05


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Guest bullseatshitndie
Posted
p/c 1.26 fwiw

 

 

have no fear w/ these high p/c ratios. the 20/50dma of equity only are coming off very low levels that indicate intermediate term tops. it's gonna take alot of high p/c ratios to get that avg back up before this market bottoms.

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Posted

Keep reading folks saying the market can't go up without the banks. Yet the BKX is exactly where it was 20 months ago.

 

Sure, the banks matter. But the real financial bellwethers are the broker/dealers. This has been a liquidity rally. A leveraged speculative frenzy. It doesn't matter whether the money is flowing to the homebubblers, bonds, foreign exotica, metrosexuals, commodities. As long as the money is flowing, the broker/dealer complex keeps going up.

 

As long as the charts of CME, XBD, SIG keep ramping, there is liquidity aplenty. And all of them are continuing to make new highs. To me, CME is the poster child for this entire rally. Note how it went IPO in 4Q2002 and has moved 828% since then. The XBD has made a 262% move. And the SMQ---a better proxy than the XBD because of its composition---is close to making a 100% move. Note how the SMQ chart begins in 3/03. Looks like someone knew something.

 

Forget the banks. Watch the dealers. Too bad there's not a "Ukranian Escort" index. Until then, these other indicators will have to do.

 

K-Wave, do you see any trouble on the horizon for these charts?

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Posted

I'm shocked that we are not down 100 points after what is happening in NO.

 

Must be the Al Green HedgeFund getting ready to unleash a Repo Blast sometime soon.

 

SAN FRANCISCO (MarketWatch) - Katrina and the flooding of New Orleans will probably cost more than $100 billion in total economic losses, Risk Management Solutions, a leading catastrophe risk-modeling firm, said on Friday.

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Posted

I agree that the Equity P/C ratio is still relatively low, but I wouldn't dismiss the Index or Total P/C ratio so easily.

 

It also has a pretty good track record of nailing tradeable bottoms. Check out the 10 and 20 day mov avgs....

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Posted

It seems reasonable to operate under the understanding that " anything that can be fixed will be fixed".

Equities are the easiest to fix - so one ma assume that after sucking in some more bears there will be a rescue . No problemo.

Oil - umm different story - not fixable.

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