Market Topping for Sure

A look at the recent topping action in the market

  1. Fundamentally valuations are stretched
  2. The Shiller P/E has crossed 30. Only the third time in market history.
  3. If you are thinking new paradigm here well earnings growth has simply not caught up.
  4. The same holds for the Price to Sales ratio which has crossed 2 for the first time in history and sales growth has simply not kept up.
  5. Margin debt is near all time highs
  6. Technicals are stretched as well
  7. Markets are encountering some critical long term resistance
  8. Transports are not confirming recent highs in the Dow
  9. We are trading over 3 standard deviations above the markets long term average
  10. Sentiment is extremely complacent
  11. Investors seem to be extremely greedy and complacent
  12. Close-up of LCD screen displaying stock market data, showing a downward trend.
    Close-up of LCD screen displaying stock market data, showing a downward trend.
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