Tag Archives: market overbought

April 2013: Most Extreme Investor Leverage Since 2001 Bubble

Posted on June 13, 2013 by

In a recent article “Earnings-Price Divergence Always Followed by Negative Returns,” I noted that every extreme divergence (-20% or lower) between year-over-year corporate profits and equity prices in the past 50 plus years was followed by negative year-over-year equity returns.  … Continue reading →

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Posted in Economic Indicators, Fundamental Analysis, Market Commentary | Tagged , , , , , , , | Leave a comment

Market Overbought – But Wait for the Trend Change

Posted on February 14, 2013 by

I introduced the concept of market breadth in a post titled “The Secret Weapon of Technical Analysis.” Based on current breadth readings, the equity market is overbought and due for a pullback.  However, trading against the trend has a low … Continue reading →

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Posted in Market Breadth, Market Commentary, Market Sentiment, Technical Analysis | Tagged , , , , , , , , , | 4 Comments