- Posted by ZorTrades
- on April 4th, 2011
It seems like everyone and their mother knows that the market is overbought here due to certain oscillators. I follow some of these oscillators, and learned a long time ago that, overbought indicators don’t work nearly as well as oversold indicators. When the indicators are oversold, you have the mean reversion players, value players, contrarians looking to pick up stocks on the cheap. When the market is overbought, you have a great many that will continue chasing on the fear of missing out on a further move. As always, allow your watch-list to put you in or keep you out of the market. Overbought markets, are normally markets that exhibit a lot of momentum, which means you should be focusing on breakouts, not turnaround situations, or stocks trying to bottom.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »