Jim, first I would like to thank you and all others on this board who share their wealth of info and expertise. It is both of interest and has led to reasonable results.
Jim, what do you think of the Barnes index on decision point. I have been following this index for the last several years and as you can see, any time the index rises above four (4) usually corresponds to market over-valuation. It has only been above the level of 4 once in the last 28 years ie. 1987. At that time, it reached a peak of 5 on this index and subsequently, during the Oct. crash, went down to a level of 2. Only at one other time has it approached 4 before retreating downwards, in 1981-82. If you look at the current graph, we have currently been above 4 since mid 1997. We spiked to a peak of 6.5 in july 1998, at which point, during the ensuing correction, up to mid Oct., we dropped to a reading of 3. Incredibly, in less than 2 months, we have rebounded to a level just above 5. Note: As I stated before, in approx. the last 30 years, the Barnes index has only been above 4 in 1987 and during the present bull run. I would like you to review this chart and give me an opinion if you beleive as I that we may be forming a double top in this index as well.
I believe that if this is true, we are in for a very nasty & major correction in the course of the next 3 - 6 months, 1 year at the outside. I look forward to hearing your reply.
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