Homepage / Technology / A widely followed signal on Wall Street shows tech stocks are rising too fast
Bonver Casino Cz Hrací Automaty S Bonusem Zdarm Magazyn Żużel Speedway W Polsce I Na Świeci Zakłady Sportowe Online Autógrafo Bukmacherska 1xbe “Pin-up O Melhor Cassino Do Brasil Web Site Oficial ᐈ Jogar Caça-níquei Zakłady Sportowe Online Obstawiaj U Bukmachera Gg Be What Industries Use Virtual Data Room? Advantages of a Data Room What Does a Board Room Provider Do? Data Room Analysis for Venture Capital Funding The Importance of Board Reporting Software Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software?

Technology

A widely followed signal on Wall Street shows tech stocks are rising too fast

We have seen a classic midday dip in the markets Thursday because certain sectors are absurdly overbought, and the volumes have been thin. When bids are very light because there is not a lot of interest in bidding up the market at these prices, very small drops can cascade into larger drops. It always starts with the leaders, in this case the Apples and the Googles, along with biotech (look at IBB), then secondary leadership like materials stocks, which have done well this month (look at US Steel midday).

I’ll give you an example of absurdly overbought: one of the most widely followed metrics of market momentum is the RSI (Relative Strength Index) which charts the momentum of an index or stock over a short period of time, in this case usually 14 days, on a scale of 1 to 100. A reading above 70 is considered overbought, below 40 is oversold.

Right now, the Nasdaq composite index has an RSI of 99.33. I have never seen this reading in 20 years, although I am not sure if it is an historic high. Regardless: a reading of 99.33 on a large index is absurdly overbought.

Nasdaq Composite, 2-day intraday with RSI (14) in lower panel

Source: FactSet

There’s many other ways you can illustrate the overbought nature of the market. The Nasdaq is 12 percent below its 200-day moving average, and almost 4 percent above its 50-day moving average. These are well above norms, particularly for indexes, and in the past when these tend to reach these kinds of levels they usually pull back. It’s called reversion to the mean.

I’m not trying to turn anyone into a technical analyst; I’m well aware of the aversion many of my fundamental friends have to this way of looking at the markets. But the markets have gone nowhere but straight up for the past three weeks, and in this case technical talk is a useful way to illustrate an old adage: no tree grows to the sky forever.

Source: Tech CNBC
A widely followed signal on Wall Street shows tech stocks are rising too fast

Comments are closed.