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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Haim R. Branisteanu who wrote (35945)1/3/1999 8:26:00 AM
From: William H Huebl  Respond to of 94695
 
Haim,

The SCY ratio relates earnings and dividends on the S&P500 to the 13 week coupon yields. The author of the indicator suggests anything over 1.21 is a buy and anything less than that is a sell.

I don't use the ratio as the author intended... I plot it on a weekly basis and relate it's extremes to market turns and so forth.

The idea behind it is that at certain points, the safety of bonds is preferable to miserable returns at high risk... an old-timer's security blanket.

It is interesting to watch and see how the "Edge of Sanity" keeps getting pushed nearer and nearer the black hole!

Will this Feb be the big one??? Stay tuned!

Bill