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Chart of the Week: Short-term Pressure Factor

Posted By Barry Ritholtz On August 17, 2004 @ 11:09 am In Finance | Comments Disabled

Investech Research [1] notes that their Pressure Factor, a proprietary indicator of oversold reading, has fallen to a minus 111. This is the 4th most oversold level in 35 years; The 3rd reading came just before March 2003 market bottom.

Short-term Pressure Factor
click for larger chart
pressure [2]
Source: Investech Research [1]

Jim Stack notes: “Each of these three previous extremes saw sizable market gains in the months that followed. So this would suggest a high probability of a pre-election rally rather than a bull market post-mortem.” The caveat to this is that where an oversold extreme leads to a short-term bottom, it typically takes several weeks after this extreme. “Don’t be surprised by more fitful, frustrating and fearful days in the meantime.”

Random Items:
Online data a gold mine for terrorists [3]
Inside Al-Qaedas Hard Drive [4]
Top 50 Chains by Systemwide Sales [5]
Radical Restructure: The Only Way to Fix Intelligence [6]
Candidates in Dead Heat Among Investors [7]
Do You IMDB? [8]

Quote of the Day:
“No persons are more frequently wrong than those who will not admit they are wrong.”
-Francois Duc de La Rochefoucauld [9] (1613-1680)


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/08/chart-of-the-week-short-term-pressure-factor/

URLs in this post:

[1] Investech Research: http://www.investech.com/

[2] Image: http://bigpicture.typepad.com/comments/images/pressure.html

[3] Online data a gold mine for terrorists: http://www.computerworld.com/newsletter/0,4902,95098,00.html?nlid=SEC

[4] Inside Al-Qaedas Hard Drive: http://www.theatlantic.com/doc/print/200409/cullison

[5] Top 50 Chains by Systemwide Sales: http://www.qsrmagazine.com/qsr50/2004/charts/top50.html

[6] Radical Restructure: The Only Way to Fix Intelligence: http://www.alwayson-network.com/comments.php?id=5338_0_3_1_C

[7] Candidates in Dead Heat Among Investors: http://www.zogby.com/news/ReadNews.dbm?ID=851

[8] Do You IMDB?: http://www.laweekly.com/ink/04/37/features-finke.phpa

[9] Francois Duc de La Rochefoucauld: http://www.kirjasto.sci.fi/rochefou.htm

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