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S&P 500 "Most Overbought" Since Feb 2012
The explosive surge in US equity markets off the 'Bullard' lows have swung the Relative Strength Index (RSI) from its most oversold in 24 months to the most overbought in 33 months in a record amount of time. The last time the market was this 'overbought', the S&P 500 fell almost 11% in the following few weeks...
Chart: Bloomberg
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Time for me to start buying
Take a good look at this one again to see where it's heading next:
http://www.zerohedge.com/news/2014-11-20/shocking-pictures-russian-potas...
I keep picturing the cliffhanger game from The Price is Right:
http://www.youtube.com/watch?v=YHv5jgXz9I8
News flash:
Websters just removed Bear Market and Recession from the Dictionary
Bullish!
not to worry, it can get moar overbought. even up to 110. because, in the new normal of no recessions and excessive debt building, all prior rules are no longer valid.
The overview is that this is central planning trying to make an economy work with its decisions of where to move the chess pieces. But when you divorce this from the market, you just end up going deeper and deeper into trouble. A market economy selects winners and losers based on their performance which, in the end, eliminates dead weight and rewards efficiency and innovation. And the economy progresses.
In the central planning model, the planners try to guess which area to strengthen and which area to weaken while reserving a huge commission for themselves. But watching the trends over the last month we get employment awful, high inflation, stimulus raging and the equity markets constantly rising on corruption and low volume (and the low volume means central bank purchases of stocks can have greater effect on the indexes).
Stalin’s central planning had to be bailed out by the United States to keep the Soviet people from revolting and starvation. Who is going to come to Yellen’s aid when the economy crashes?
Every time I BTFATH, there's another ATH to FB!!
IKR?
It's different this time.
Listen.
It wasn't too long ago that C was trading at a lowly $1 fucking USD. You guys remember, right? There was a guy on here pushing $2 options and everyone was calling him crazy.
Today, $50-fucking-4. I was a scary buy at the time and a welcomed return. Caviar for dinner tonight!
I don't hear anything...
So talk louder!
Listen.
OK, I MADE $53 USD MINUS BROKER FEES!
Read:
You do know that Citi did a 1 for 10 reverse split when they were trading at $5 right? Looks like you are having Taco Bell instead.
lmao!! The good Doctor is throwing haymakers around fight club today.
good one doc, looks like the clown show is back in town, reminds me of 2007... and 1999, and ...
Best long entry point we've seen in a while. Should get some further momentum from the upcoming helicopter drop, debt forgiveness and 10% tax cuts.
These New Fundamentals have never been stronger.
Don't forget about our annual rally induced by the fat elf. He's making his list, checking it twice, making sure the S&P continues toward a higher price.
Aw, it's not nice to call Mr. Yellen a fat elf. Now you're on the naughty list!
"Debt forgiveness" for whom and what entities exactly? Do tell and share your sources. Moral hazard is a real bitch. Such unilateral debt forgiveness will finally unleash global hyperinflation as all those (now debt-free/unencumbered) paper claims start chasing real goods.
fucking bring it!!!
For whom the bell tolls....
"The last time the market was this 'overbought', the S&P 500 fell almost 11% in the following few weeks..."
Yes, it fell 11%, but it ran right back up. Wash, Rinse, Repeat.
...and all this while The Fed is withdrawing liquidity via reverse REPOs like never before with interest rates at all time lows...
different indeed.
BTFD. What dip?
Just had a nice one in silver. . .
http://niggastolemybike.ytmnd.com/
WTF?
Hahahahahahaha and
Hardy had heee-heeee
And snort and smirk and hardy HAHA heeheeeheeeheeeheee....
like buying a pinto at lamborgini price
Barry helped build that S&P which should at least earn him a blindfold at the gallows.
Yeah, but no cigarette cause the wookie would be upset.
Plan B involves guns. Obama's controllers can’t keep taking more and more liberties from the people at the same time reducing their standard of living, while putting more and more of individual property under government control, without eventually creating pockets of armed resistance.
Then, the Plan B answer is to step up martial control, exercising greater and greater police powers to keep the people in check. Just look at the massive increase in weaponry for a whole host of government departments.
That’s when the revolution arrives.
Tell me. Is the rise in the S & P because traders are extracting cash from under their mattresses? Or is it because, oh what's it called, of borrowing?
Well its the same way pickpockets borrow....
I may buy some dip but no way will I get suckered into a short with these crooks bending the air.
This infogrpahic is a bit of an exaggeration. I looked at the RSI indicator on an SPX chart for the last 5 years. It hits the 74 range regularly and often doesn't lead to a top. 74 seems to be the lower range of overbought.
Stocks are participations in real assets, so even if the system comes crashing down it's a lot better to be in stocks than in FRNs but probably not as good as PMs.
???? Lehman was a "real asset" once upon a time then, as per your definition.
Some companies fail, that's how the world works. Don't bet on one horse, and personally I don't want to touch financials with a ten foot pole.
But unless we get a total collapse of society, a diversified stock portfolio will always be worth something. Companies like Coca Cola, Altria, AB Inbev, P&G, Unilever, oil majors, mining majors etc produce real products that are bought and consumed by real consumers/businesses.
That's why I think owning a piece of these companies is a safer bet than keeping your money in the bank or cash stashed away in a safe.
BOT its different this time.....
Just puked in my moutha little
I will say go short young man just to set up a Santa Claus rally.... Hard to see an end of the year run of 3-5% from here....
A market that just goes up is not a market. That kind of trend is temporary. A market that just goes up and up and up on low volume and printed paper is taking her to the wall. The central banks don’t have any plans beyond hitting the wall.
overbought overschmought -
"In the meantime, an index of
German share prices (1913 = 100)
rose from 126 in January 1918 to
531,300,000 in September 1923, and
to 23,680,000 million in November
1923 amidst extremely high
volatility. (In dollar terms, because of
the currency depreciation, the same
index (1913 = 100) fell from 101.55
in January 1918 to 2.72 in October
1922, before recovering to 39.36 in
November 1923.)"
I'm confused by this chart. Sure, it went down for a little while... but then has gone up 47% since just before the teensy dip? Do I interpret this as a buy signal of epic proportions?
I'm confused by this chart. Sure, it went down for a little while... but then has gone up 47% since just before the teensy dip? Do I interpret this as a buy signal of epic proportions?
10 year visas to Chinese business and citizens!
Bammm! Your job is done here!