From Carl Futia's (http://www.carlfutia.blogspot.com/) book, "The Art of Contrarian Trading" comes the plot above which is the SPX monthly with a 4 year or 48 month simple moving average overlay. Carl uses this very simple graph to get a grasp on whether the market is under or over fair value. Price below the moving average indicates below fair value and vice versa. Just another tool for the toolbox. :)
Monday, October 12, 2009
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2 comments:
What a great bunch of charts!
Thanks.
great blog and charts, thank you for the effort
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