A Qualitative and Quantitative Look at GE (as of 1-16-2008)

 

 

Below is the CPMAR (current price to moving average ratio) for GE. A

 

CPMAR value of less than 1 indicates that the current price is less

 

than the (ten day) moving average. If the CPMAR = 1 then the moving

 

average and the current price are equal. Finally, if the CPMAR is

 

greater than 1 then the current price is greater than the moving

 

average.  

 

 

 

 

 

 

 

 

 

 

 

 

 


              Fig.1

 

All averages are tracked on a 10 Day Moving Average Basis.

 

ARPC = Average Relative Price Change

 

ARPA = Average Relative Price Acceleration

 

 

 

 

 

 

 

 

 

 

 

 

 

                          Fig.2

 

For an explanation of Relative Price Change and Relative Price

 

Acceleration go to

 

http://www.intelrap.com/mathfinance1.html

 

 

Later we will discuss how these graphical (and quantitative) tools can help

 

us to make qualitative estimates of the tendency of a stock price (GE in

 

this case) to “revert to the mean”. Still later we will present quantitative

 

forecast models.

 

 

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