A Lot To Think About

Stocks are now very slightly oversold heading into a strong seasonal period. In a vacuum those two factors should give the market a bullish bias over the next few days. But its not that simple as the elections and QE II are just around the corner as well.

It is becoming somewhat conventional wisdom that QE II will be a sell the news event. Does that mean they try to sell ahead of it or does that make it a self fulfilling prophecy? Have a good night.


Anonymous said...

Today the Dow is closing 40ish points below its highest close in almost 6 months.

It is a very peculiar metric indeed that can give a reading anywhere near 'oversold' under this condition.

I realize this is a 10 day reading but even so, we are much closer to the high of the range than the low over the past 10 trading days.

Tsachy Mishal said...

We have gone sideways for ten days. For a short term reading all that matters is the last ten days.

It does not matter if we are hovering at a low or a high.

Anonymous said...

I don't doubt the math. But pull up an hourly chart of the last ten days and just look at it.

Any metric that would call that oversold, even slightly, is a peculiar metric.

That's all I'm saying.

nicasurfer said...

here comes pomo!!