Monday, February 21, 2005

Interesting Data Observations

While doing my weekly data collection ritual I noticed some interesting data points.

First of all, the S&P 500 P/E fell from 20.86 for the 2/11/2005 week to 19.71 last week. The Dow Jones Utility Index's P/E dropped from 19.19 for the 2/11/2005 week to 17.85 last week. If you look at the charts, this phenomenon must be from an increase in earnings and not a price change.

Also, if you will note my past big picture chart posts claiming that the big markets (The Dow Jones's) were looking a little toppy the past few weeks. It seems that during the week of 2/4/2005 specialist shorts nearly doubled from 255,265 to 457,465, member shorts went from 545,305 to 781,746, and public shorting went from 500,416 to 541,172.

I'm looking forward to next week to see if the shorts went up again and to see if the trend is going to continue. The short selling trend has been increasing lately since the week of 1/21/2005.

Best Regards,

The Soothsayer of Omaha

1 Comments:

Blogger Michael Taylor said...

The drop in PE's for the market falls in line with the rising inflation we're now seeing being reported in the PPI. Of course, the signs of inflation were showing way before this fudged statistic. Companies now have the power to raise prices for the first time in years. Question you have to ask yourself, is the drop in PE a good thing or bad? Remember back in the 70's when PE ratios were fantastically low?

9:18 PM  

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