4 replies to this topic

[ogm]

Take 100 random stocks. Pull up RSI 7, and see how many of them look like they have more room to drop next week or 2 weeks.

[selecto]

I dunno. Looks a little uppy from down here.

[ogm]

I dunno. Looks a little uppy from down here.

Meant the weekly charts on individual stocks...

But daily's don't look that bad either.

Here is what I was going to say.... remember the time when indexes looked strong, at the same time a lot of stocks were in downtrends as summations were erroding.

Now it looks completely the opposite. Indexes look weak, but if you look at individual wekly charts many stocks are washed out. Most stocks closed up for the week. And RSI 7s are very oversold and turned up.

And I mean very oversold.

Even Greeni's favorite IYR

Edited by ogm, 10 August 2007 - 05:59 PM.

[emdee]

Agree ogm. I noticed the same thing. The indexes look worse than many stocks. Breadth indicators washed out in line with other bull market bottoms. I have been phasing in and my positions are holding up well. Still give it a chance for a leg down to 1380 SnP. Maybe the boyz will cash in on some cheap calls next week. We will see. M

[diogenes227]

Did your exercise on the 100 general market stocks I follow. Used a 20-period CCI (which I prefer over the RSI). One stock remained on a weekly buy, 52 were on sells and declining, and 47 remained overboought. Zero were over oversold on a weekly basis. Interesting exercise. Good suggestion. What does it mean? Not sure since I don't focus on a weekly timeframe. On a daily basis, the stocks are wildly oversold so I expect a bounce into late August. Maybe it'll be a big enough to make everyone believe September and October will not be September and October this year. But considering the above weekly data, I suspect no one should be long come September because none of those stocks are oversold and they will be someday again. Maybe in October.