The BSR needs to be reconfigured
The BSR needs to be reconfigured to eliminate inaccuracy and distortion caused by double counting. Stocks within ETFs and Market Industries are counted twice. Similarly, stocks within Contra ETFs are counted inversely. The simple solution is to eliminate all ETFs and all securities within Market industries from the BSR calculation.
Richard Hadlock
shared this idea
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John Hollosy
commented
Since you can only go to ZERO on the scale of ZERO TO TWO on the MTI...and the lowest BSR can go it ZERO...how much closer do you really need to be, to see a massive BOTTOM is near/in place?...more relevant would be at TOPS...
As far as ETFS, they are so diversely created, it is best to ignore them, along with closed end funds(market), stocks under $1 etc...V V C, used to clean its data base regularly...
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Howard Beckett
commented
When the BSR was at its lowest (.02 on 12/1/08) it was 100% wrong. If you took out the Buy rated Contra ETFs it would have been .01. Because "changing" the BSR is problematic, I recommend a purified ratio called the B2S ratio which ONLY shows "Buy" rated stocks to "Sell" rated stocks. More than 10% of the items in VV's list of 8000 equities are ETFs. This distorts many issues.
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Xavier Vetticappallil
commented
BSR should avoid ETF