Using Relative P/E Ratios And Technical Analysis by Peter Desnoyers
Here's why you should track both fundamentals and technicals for trading stocks.
The financial storm arrived in New York on October 19, 1987, following a volatile week in the markets. Weekend news of the Federal Reserve’s desire
for a weaker dollar set the stage for investor skittishness. The selling began in Japan and gained strength in London, giving early warning of unprecedented weakness in New York. By 10 a.m. on October 19, only a few of the Dow Jones Industrial Average (DJIA) components had opened, and it became clear that the day was going to be an extraordinary one.
That was Monday. By the end of the week, the DJIA had lost 13% of its value and was 800 points below its level of two months before. As the October 26th issue of Newsweek reported, “The cascading Dow and record trading volume marked a major shift in psychology and sent a powerful shiver across the country.”