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


















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


ARPC = Average Relative Price Change


ARPA = Average Relative Price Acceleration
















For an explanation of Relative Price Change and Relative Price


Acceleration go to





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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