Welcome to the PearlFisher Market Lab

In the Market Lab we discuss current and historical topics that impact the market. Most charts will be updated once a month, some of them weekly. 

 

 

Indicators

(usually updated every Thursday)

We examine the current market conditions and get a better picture of where we are and where the market will be heading. Here we introduce some of the most important ones. See our regular and free newsletter for when we think it is appropriate to use the different indicators.

 

 

1. Sentiment Indicator: Bullish vs Bearish Sentiment (AAII)

Current reading -10.47 (October 6th, 2011)

=> Investor sentiment is in bearish territory....and has reached extremely bearish levels which generate a "buy" signal

More detail on this indicator...

 

 

2. New High vs New Low indicator

Current reading -76.80 (October 6th, 2011)

=> This indicator is in negative terriory but the momentum is positive. 

More detail on this indicator...

 

 

3. Volatility

Current reading is +36.27 (October 6th, 2011) 

=> Volatiity is still high but sitting right on its 50-day moving average. If it comes down from here then that is a very positive signal for stock markets.

The Vix measures the volatility of the S&P500. Over the long term it usually returns back to its trading range of between 10 to 30. 

 

 

 

4. Put/Call Ratio

Current Reading is 0.93 (October 6th, 2011)

=> the 10-day moving average (black) of the Put-to-Call ratio is in midfield (neutral territory) not really generating a sell or a buy signal yet....

The Put/Call Ratio trading range over the long run is between 0.5 and 2.0. Any reading outside shows extremely bullish or bearish positions from investors.