Overbought Condition in the Stock Market

[GoodTrader1 10]

 

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!

[GoodTrader1 10]

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.

[Perrin 10]

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

[Perrin 10]

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?

[zdo 20]

Mitsubishi, you are (beyond) a spammer - plain and simple

[zdo 20]

 

...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" ?

 

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