Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

GoodTrader1

Overbought Condition in the Stock Market

Recommended Posts

20130124_naa50r.png

 

A good way to determine the levels of oversold or overbought of the stock market is by using the indicator that measures the percentage of stocks that are above their 50-day moving average.

 

It is a breadth indicator that you can find under the symbol $NAA50R in StockCharts.com

 

This indicator is currently in overbought zone, which makes me think that the odds are in favor of a pullback in the markets.

 

Markets are always oscillating between the two extremes. The stock market can remain in overbought condition for some time but now is the time to start to take precautions and stop thinking that the market can continue to rise indefinitely.

 

In the end the price is what matters, but you must be prepared for a bearish environment at least until this indicator falls under 20.

 

Happy Trading!

Share this post


Link to post
Share on other sites

I have shared in this great forum the last post I've written in my blog because I think it is important that traders realize the overbought level existing in the stock market.

 

To my knowledge this is not spam.

 

Greetings.

Share this post


Link to post
Share on other sites

With all due respect GoodTrader, I think Mitsubishi may be right. I would love to think he wasn't. However, Mitsubishi is a trained assassin of bad scammers & spammers.

 

Charging for your services without being upfront about it, that's not very honest. GoodTrader/BadPerson is not going to endear you to people.

 

GoodTrader, have you ever considered a job in advertising, or perhaps design work? There's no harm in doing another career, trading is extremely tough. You know that you would feel better about yourself and have a happier, more fulfiling life if you tried to help others (without being dishonest or too demanding), rather than going down the dark and lonely path of scamming.

 

If Mitsubishi's killer instinct is wrong this time then I apologise. If however you look inside yourself and find that you don't like what you see, then it is within yourself to change and to make yourself a better person.

 

Either way, you've got to admit that Mitsubishi has one hell of a way with words :)

Share this post


Link to post
Share on other sites

What would happen if no one did it? What would TL become? It would be an interesting experiment to do, what would happen if no one stood up. How long would it take before the site turned seriously bad and all the good guys bailed out. I don't think that would be the most intelligent experiment to undertake if we are interested in improving ourselves.

 

It's an interesting thought. To learn from the best I want to create a community where the best and the most intelligent traders and free thinkers can live and thrive, and in so doing I can learn from them.

 

And uh, (hang on I'm trying to think and write), it's in my interests to also stand up (even if it's a very scary thing to do) to make this place a better place. Which then (hopefully) attracts the top talent and brains, which in turn helps me learn more.

 

But, if I don't stand up, what does that make me, and what does that make the community?

Share this post


Link to post
Share on other sites
20130124_naa50r.png

 

...you must be prepared for a bearish environment at least until this indicator falls under 20.

 

OK! Let's heavily short the indexes into COB tonight and shucks into the opening manana too.

 

.but "under 20" ?

:confused:

 

... what about "you must be prepared for a bearish environment at least until this indicator falls under 55" or... ???

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.