January 1 2021
this is a new chart for this web log that I noticed on the Decision Point Site. At top is the SPX index. The main panel is the price earnings ratio for the SPX, the number of dollars an investor is paying for one dollar of earnings of an SPX member stock. AT bottom is the Swenlin Price Momentum Oscillator.
And notice the main P/E chart has now finished five waves up from the March low.
Going into the February high the P/E was 24 a bit on the high side. The covid slide took it to 16. Not is has more than double, and it 50% higher than at the Feb high even though the index is only 15.3% higher. This is social mood on boil! The FOMO Fear of Missing Out has gamblers throwing money at stocks. Note PMO at bottom has turned down. So this market is on borrowed time.
Indeed interviews this past week with Tesla investors indicated they had converted call options to stock and had no plans to sell.
Tesla
Tesla has topped the dot.com performance and any other mania my lifetime.
Time is wrong, Joe and Kamala are not the man of the year, Elon Musk is.
you might print this screen shot for posterity, I have never seen anything like it.
The P/E is 1349. Ross Perot rejected all offers to take EDS public until a small bank offered to market the stock aat 190 to one p/e. 50million shares traded hands. No doubt many funds grabbed some shares so they could claim on the last day of the years, their report shows this stock held. Note the one year target is 413.
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