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Amazon’s stock head for first loss in 8 sessions, as charts suggest ‘very overbought’ condition

“Dan Wantrobski, technical analyst at Janney Montgomery Scott, said Amazon’s stock was “very overbought by short-term technical standards.”” writes Reporter Editor for marketwatch.com. Amazon’s stock was still up 36.7% over the past three months, while the Nasdaq 100 has gained 10.5% and the Dow has tacked on 2.2%.The stock had run up 7.0% over the past seven sessions, which included five-straight record closes. Source: marketwatch.com Share This:

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GBP/USD: Reaching Overbought Territory; Not A Buy Around Current Levels – Credit Agricole

“It may have reached overbought territory” writes Yohay’s Google Profile for forexcrunch.com. Hence, the currency may well have reached overbought territory,” CACIB argues.Here is their view, courtesy of eFXnews: Credit Agricole CIB Research discusses GBP outlook and advises against buying the currency around its current stretched levels. “All eyes will be on the release of Q4 GDP and November labour data this week. Source: forexcrunch.com Share This:

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A key metric shows the stock market is at ‘extreme’ levels that are the most stretched in 20 years

“In the near-term, be aware of extreme sentiment and overbought conditions,” Morgan Stanley chief US equity strategist Mike Wilson wrote in a recent client note” writes Joe Ciolli for businessinsider.com. That’s the logic behind a technical indicator called the “relative strength index,” which Morgan Stanley says is the most stretched it’s been in 20 years when it comes to the benchmark S&P 500.Rather, it’s an indicator that will coincide with — rather than cause — a correction once the market has fully topped. Source: businessinsider.com Share This:

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The Dow could suffer a 2,400 point blow at any time, warns Wall Street legend Byron Wien

“A correction hasn’t shaken the historic market rally yet, but Wall Street legend Byron Wien says it’s “definitely” coming” writes unknown author for cnbc.com. “An overbought market with optimistic investors is vulnerable, and the question is what triggers the vulnerability?”. “Maybe the market just spontaneously begins to fade,” added Wien, who believes the markets are already borrowing performance from 2018. Source: cnbc.com Share This:

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This stock market rally is on thin ice

“Triple witching is when stock options, index options and futures all expire on the same day” writes Simon Maierhofer for marketwatch.com. This is the riskiest time for stock market bulls as seasonal weakness spans from mid-September until late October.Based on seasonality, stocks are on thin ice.However, it’s worth knowing that stocks have declined during the week after September triple witching in eight of the past 10 years. Source: marketwatch.com Share This:

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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” writes Robert Daemmrich Photography for cnbc.com. Regardless: a reading of 99.33 on a large index is absurdly overbought.Right now, the Nasdaq composite index has an RSI of 99.33. Source: cnbc.com Share This:

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Cramer shares the unusual signs that mean a stock is ready to explode

“Technicals and fundamentals are Jim Cramer’s key tools for determining when a stock is ready to explode” writes Elizabeth Gurdus for cnbc.com. But the inverse can also be true, as a stock can also fall so fast that investors should expect it to snap back because it is technically oversold.Investors can determine whether a stock is overbought or oversold by charting the ratio of higher closes, also known as the relative strength index, or RSI. This is a momentum oscillator that measures the direction of a given stock and the…

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Markets News 

Conflicting signals in the S&P 500, Nasdaq

“But when and if they do roll over to confirmed sell signals, retribution can be swift” writes Lawrence G for marketwatch.com. By themselves, overbought conditions are not sell signals, but instead are confirmation of the rise in the market.That is somewhat lacking, except for the fact that there are certain overbought conditions, and that can be interpreted as a favorable thing.As confirmation from other indicators, we’d like to see buy signals or at least signs that they have similar momentum.Even though the broad stock market, as measured by the S&P…

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Thomas H. Kee Jr.: Our ‘overbought’ indicator for U.S. stocks is about to go off

“The strategy we have coupled with this Sentiment Table, appropriately called the Sentiment Table strategy, spends about 68% of its time in cash every year” writes Thomas H for marketwatch.com. This would be a welcome sign for our Sentiment Table and Sentiment Table strategy.Currently, our Sentiment Table is showing 90 in the near-term strong column, and if it gets to 100, it will officially offer an overbought market indicator.This is not completely abnormal, because the alerts that are offered by the Sentiment Table do not happen regularly. Source: marketwatch.com Share This:

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The most over-loved investments as tech and Trump keep stealing the spotlight

“Yes, suggests our call of the day, which gives a list of investments that are overbought or oversold” writes Markets Writer for marketwatch.com. Even with so many overbought areas, the BAML strategists aren’t throwing in the towel on U.S. stocks or other riskier assets.The Turkish lira and iron ore are in that camp, as are energy stocks and silver, but to a lesser degree. Source: marketwatch.com Share This:

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