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Technical Thoughts: How To Trade An Overbought Market

Saturday, March 18, 2017 23:33
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(Before It's News)

by Jeff Miller, A Dash of Insight

For the last three weeks, the term “overbought” has been frequently used to describe the overall market as well as many specific stocks. What does this really mean?

It has a dangerous sound, and that is indeed the common message. A stock, or a sector, or the overall market has rallied more than expected over an extended time. What does that mean for traders? Or for investors?

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Source: http://econintersect.com/pages/investing/investing.php?post=201703190048

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