I have never been a technical analysis guy. To me, it’s like trying to predict the weather a month from now, or reading tea leaves and palms.
In this article, points 1, 2 and 4 are all technical points. Point 3, however, is a general fundamental analysis point. Do earnings justify an extremely high P/E? Remember if you invert the P/E, you get the earning return on your price for the company.
There are few bargains in today’s market. If you invest in the average stock, you are looking at a very poor return in the next 10 years. It’s time to be extremely selective, rather than be openly buying.
Read Full Story: The stock market is turning into a sloppy, ugly mess—and it could get worse – MarketWatch