Possible values of CET and interpretation
| Price change | CET > 1 | CET = 1 | CET < 1 |
|---|---|---|---|
| Price increase | Price increases supported by more than proportionate change in volume. This a reflection of real good news | Price increases matched by proportionate change in volume | Bull run: price goes up but buyers show no interest. Price increase is said to be speculative |
| Price decline | Price decreases supported by more than proportionate change in volume | Price decreases matched by proportionate change in volume | Bear hug: prices are going down, but buyers are not interested in buying |
| Price change | CET > 1 | CET = 1 | CET < 1 |
|---|---|---|---|
| Price increase | Price increases supported by more than proportionate change in volume. This a reflection of real good news | Price increases matched by proportionate change in volume | Bull run: price goes up but buyers show no interest. Price increase is said to be speculative |
| Price decline | Price decreases supported by more than proportionate change in volume | Price decreases matched by proportionate change in volume | Bear hug: prices are going down, but buyers are not interested in buying |
Source(s): Datar (2000)
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