Markets News Stocks 

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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Markets News Stocks 

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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Markets News Stocks 

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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Markets News Stocks 

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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News Stocks 

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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Markets News Stocks 

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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Crypto News 

Bitcoin Price Technical Analysis for 02/27/2017 – Signs of Rally Exhaustion?

“Bitcoin price has been able to keep up its climb but it might need to make a correction before heading any further north” writes Published By for newsbtc.com. A disappointing announcement, on the other hand, could push bitcoin price higher against the dollar once more.A break below this area could bring bitcoin price to the next area of interest at $1000 or the 100 SMA dynamic support.Still, investors seem to be on edge that another announcement might be made soon, which makes them reluctant to take bitcoin price any higher…

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Crypto News 

Bitcoin Price Technical Analysis for 02/24/2017 – Aiming for $1200!

“Bitcoin price has gained bullish momentum once more, allowing it to aim higher and break past the February highs” writes Published By for newsbtc.com. In China, the lack of headlines on the government’s crackdown on bitcoin exchanges is allowing investors to put their money back in the cryptocurrency. It seems as though authorities are not looking to implement stricter regulations or impose penalties on bitcoin clients, but there’s still a slight chance that any major announcement could wipe out recent bitcoin price gains again as it did so in the…

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