The three things of investment interest follow below. The first thing is a weekly review from Crossing Wall Street. The second thing is the weekly signal form the Decision Moose. This week the signal moved from cash to small caps. And, as a featured third thing for the week I plan to write about Old_Skeet's Market Barometer and how it is put together. Today I will cover the earnings feed.
1)
http://www.crossingwallstreet.com/archives/2018/08/cws-market-review-august-24-2018.html2)
http://www.decisionmoose.com/Moosignal.html3) Today I'll write about the earnings feed which is one of the three main feeds found in the barometer. I use a blended approach in the earnings feed with it being comprised of both the past twelve months earnings (TTM) and forward twelve months of earnings estimates (FE) for the S&P 500 Index. This gives credit for what the Index has produced and then for what it is expected to produce. When the two are averaged and then divided into the price of the Index results in a Blended P/E Ratio. Then the Blended P/E Ratio is scaled and becomes a part of the barometers summation reading. An example. With market close of Friday the S&P 500 Index closed at 2875. The blended P/E Ratio currently scores at 146.75. When the math is done this results in a quotient of 19.6 (Blended P/E Ratio) which is then scaled and becomes one of the three main addends used to produce the overall reading. Currently, by my scaling, the Index is 2% undervalued by the earnings feed. Tommorow, I will cover the breadth feed.
