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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: donald sew who wrote (24458)11/20/2001 6:40:21 AM
From: Steve Lee  Read Replies (1) of 52237
 
"technicals may be over-rodden by fundamentals/news"

Fat chance! Even if we test the September lows the NDX at least is in a liquidity induced bubble. Forward PE (Dec 01) of NDX 100 is 59.9 and that's on pro-forma numbers. Analyst expectations for NDX 100 companies make for a 30% recovery by Mar 03.

If capture of bin Laden happens, it will be time to sell the news as these prices already factor in that probability.

Here's where I calculate weighted forward PEs for the NDX 100:

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