Markets can get oversold, but when is a market really oversold?
In my new video I show you a specific example of how markets can become oversold, stay that way, and why sometimes a relief rally doesn't change anything.
This is a short video and it's one I highly recommend watching as it will help you in the future to be aware of the oversold phenomenon.
I invite you to take a look at this new video with no registration and no charge.
I'm also interested in your views or strategy dealing with an oversold market, just leave us a comment below.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Your videos are awesome and this one is no exception. Your ability to clarify what is happening in the markets is so impressive. With so much noise in the market, "Market Club is truly a gift."
Thank you so much for all you do for us!!!!!!!!!!!!!!!!!
Ominous how one day everything is just fine, markets up
next day more bad news, markets down.
Seems there was no reason over the weekend for the Market Makers
to gap the dollar down and the Euro up --
smacks of market manipulation to me.
The S&P 500 is caught in a trading box between 1050 & 1100,
having made a new 3-month low on 25-May and a new 3-week high today.
So, I'm a day trader now -- after two candles Down I go long,
after two candles Up, I go short, while I'm waiting for the S&P to break
out of the Box one way or the other.
Anubhav,
That is a very good question. I'm not sure how to answer or even if I know the answer.
One thing is for sure, if profit margins continue to get squeezed it becomes more difficult to fund a recovery in my opinion.
All the best,
Adam
I can relate to the term oversold in the stock market perspective but I couldn't understand its dynamics in the consumer-driven, more normal market conditions. Can over-selling exist in a supposed market if nearly every seller indulges in selling the goods/services at highly-discounted rates, creating a state of lower profit margins and diminishing chances of a market revival?