How Oversold? Very Oversold.

This was one of many stories we weren't able to get to last week. From MarketBeat:

...“You tell me what a good buy is when there’s no ‘E’ in the price-to-earnings equation. When there’s no earnings flow, it’s impossible to value a company.”

This nagging concern — the health of the world’s financial system — comes at a time when the usual metrics suggest that there are notable values in the equity market. Author and trader Michael Panzner notes that the current value of the Standard & Poor’s 500-stock index is more than 30% less than the 200-day moving average, more than the extremes reached at various times in 1929, 1987 and 1932 after similar five-day selloffs. In each case, the equity market was higher three months later, with the best results three months after the Oct. 19, 1987 crash, when the S&P was up 11%....MORE