When trading, I have no regard for value...just price action. When selecting investments in equities as a potential shareholder, I look at current and forward P/E. In my opinion, P/E is a meaningless indicator when looking at stocks like NFLX at 330 and AMZN at 180, which is taking a stake in PLUG (a company with no earnings). These P/Es send Buffet's philosophy and Oneill's CANSLIM out of the window. Look at the $NDX and $DJI...the true current and historical values of these indices are "fluid". The longer historical price history of the indices are synthetic, and have virtually nothing to do with value. Companies are always deleted, and added from and to these indices over time. Now I just pulled up a list of the $NDX components that I saved from 2002. Of the 100 companies in the index at that time, 36 of them are no longer on the index, they have been removed from the index, acquired or out of business (I have the list saved on Yahoo Finance, if you want screen shots, send a PM). I haven't done the math, but i wonder, if the list didn't change, what would be the value of the $NDX now? The $DJI is somewhat different now as well. AAPL, INTC and MSFT are the only Nasdaq stocks listed in the Dow. What's even funnier? AAPL is both a $DJI and $NDX component. So that means if AAPL has a really bad day, so will the $DJI and $NDX. So...the "shell game" of moving stocks in and out of the $DJI and $NDX have been going on for a long time, and that game will continue. Really at the end of the day, it's a matter of whether or not a company meets the criteria to be a component of either (or in AAPL's case, both). The consolidation of the markets over the years has changed the landscape. For many years, the NYSE reserved the symbols I and M, hoping that Intel and Microsoft would apply for a listing on that exchange, now that means nothing. My belief is, before we try and determine what value is, we have to define it. I don't know how to define value in today's market. Frankly, from an investor's view, I don't know how to measure value in a company like NFLX, that trades ~330 times earnings. I don't know how to value a company like AMZN that trades ~180 times earnings and is taking a major stake in PLUG with no earnings. Well, I guess I just measured it. Maybe the real question is, how do I justify it. Speaking of the POTUS, I do my best to remain non-partisan in public circles and never use names. With that said, I believe the S&P bull party paused on March 21st (we warned our members on February 20th). Is the market now going through a "new POTUS hangover"? Was the market overextended? The questions go on. I can't figure out the value of the markets. I don't spend enough time in the beltway, and don't hobnob with the DC elite. I just stick to momentum and technical analysis, and watch old sitcoms during the trading day. Good luck!
The average/typical trader reminds me of that movie, especially that one line: "I like money." ...Real life is not that far from that movie -- we are a dumb society, collectively in general. People have been saying that the Nasdaq, and market in general, have been overvalued for the past three or four years or five years. Everyone is dumb as far as I'm concerned.
QQQ looks Fine on IBD charts, 50dma, 200dma,with to many other indicators to note here. barchart.com opinion on QQQ, is 96% buy last week ; 80% buy yesterday. May sell in May; not a prediction?? TGT stock is a 96% sell last month ;80% sell, yesterday , HeSaid SheSaid.
%% If one doesnt like the trend in QQQ wait a bit; its a roller coaster................................