A few months ago I posted (here) the distribution of the values of The Bubble Index on a given day (June 27, 2014). Building upon that idea, by creating an index which shows the distribution evolving through time, The Bubble Index Composite is an index which plots the median of the distribution for all monitored stocks. I plan to produce these composite indices for every global market. For example, I have about 1,400 US Stocks which have 1260 and 1764 day indices. Taking the median of these 1,400 values each trading day and plotting gives the following graphs:
The recent stimulus plan revealed by the Bank of Japan on October 31 has been widely talked about by traders and investors. Interestingly, this plan was announced shortly after a peak in The Bubble Index: N225 (1260 and 1764 days). The 1260 day index peaked on September 30, 2014 and the 1764 day index peaked on October 7, 2014.