I once fell into this misconception, thinking that if something was overbought it must be a sell. After delving into mean reversion data for more than a decade, I can tell you, unequivocally, this is not the case. In fact, sometimes when a stock is overbought it is an even better buy than when oversold, and vice versa. Everything is data dependent. Each stock has a life of its own, a unique shareholder base with their own lives.
Two weeks ago, the SPY flagged overbought in Exodus. I posted this blog inside there to let members know this was a good thing.
Today I bought FEYE, which is also overbought, according to our algorithms. The term overbought simply denotes a technical level that is stretched to its outer-limits. I like to view this as I would a streaking baseball hitter, batting .550 over the past 10 games. Would you view that hitter as an easy out or someone likely to take your head off with a line drive up the middle?
Here are the stats for FEYE and why I bought it.
A 90% win rate over the past 10 incidences, not too shabby.
Here are some of the other stocks that are streaking now in Exodus, flagging OB, that have resulted in higher stock prices over the past 12 months.
This is what I do in my spare time, figuring out ways to unlock the ancient secrets of speculation. What the fuck are you doing with your lives, playing video games?
Top picks heading into the weekend, FIZZ, FAZ, XIV, FEYE.
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Overbought means it will likely continue to drift upwards on no news, but get hammerred at anything negative. I’m not a fan of that kind of risk profile, so it surely doesn’t mean “buy” either.
i will say that the markets are taking the London bombing news quite well. So it looks like we reached the point where terrorism is so common that it doesn’t even terrorize Americans when other white people are the victims. The empathy (different from sympathy) is gone.
What does the column ‘Flagged’ signify?
That’s a typo. It should say ‘Fagged’
Extra gnc
Haha I have always liked you mr moosh
Huh with bears like Henry and Bass capitulating. I would think the market would crash next week. Especially if central banks target 1.5 instead of 2 inflation rate.
http://www.zerohedge.com/news/2017-09-15/yesterdays-watershed-central-bank-announcement-which-everybody-missed
It never mattered about ‘conventional capitulating’
full control regime around the indexes, a clear aggregate political geopolitical or societal agenda around it. capitulating was never a factor
Henry’s been a bull for a few years now…
Nice programmed outcome today, manipulators. You’re not fooling, me (Doesn’t need to be reiterated but why not)
I
HAVE
A HIGHER
TRADING ACCT
NOW THAN 6 YEARS AGO
AND FULL LINEUP OF INVERSES
For any, Shadow central banker, Index programmer, Wanting to know
Why do you taunt them so? The algorithm Gods are angered at your arrogance, and will rain thunder down upon you.
Great to see the music interludes back. Another great musical introduction for me. Thanks.
(The real hero of this site remains the image editor imho. Absolute, understated, awesomeness.)
Same here, and wise musings from a stock picking maestro to boot. Thanks Le Fly! Plus, I needed some bad ass piano piece to pull me out of my recent weird old school tame impala kick.
How about a Fly playlist on Spotify or something?
Fuckin dope!
Tame Impala? My friends who listen to that shit do drugs. I thought you were an old man moosh? Ever listened to Of Montreal? Let me know if you want some recommendations
Nerp. Bring em on. Fuck you, I am still under Fly’ s self age ban. Thanks homie
Of montreal way too leaf you mother fucker. But that was funny.
They are my favorite band that’s still alive by like miles and miles
Tenfour…ill give them a listen
Ha, that shit is out there…i like it
It’s amusing to me how fast the spectacled wearing ‘fact fags’ and the ‘beer for dinner’ angry whores dry up as soon as The Fly stops aggressively providing sand for you to shovel into your gaping collective vaginas. Fuck off you guys! For the record, while this change is hard, and I do love talking shit, I’m entirely for what’s going on.
Let’s get back to Banking Fucking Coin puh-lease. I read RC’s picks. I follow OA to the fucking T and I’ve learned his style (I don’t trade options yet) but I draw lines on charts and shit and I’m always thinking about sentiment and getting the lowest possible price, etc.
But more than anything I’ve ALWAYS wanted to learn how to pick stocks like the ‘FLY.’ To buy at the god-damned high-of-the-day on some fucking ‘thesis’ meant for winning and hell-bent on it’s going higher and destroying my opponents. I NEED to know this. Fuck those guys who were only here to stimulate their haggled clitorises. I’m young still. I need to make some fucking money.
Good night and good luck, bitches.
Does Fly pay you to ramble?
Puh-lease???? You are lame.
Get a fucking diary and spare us all from your girlish navel-gazing.
This past Monday the market SOARED despite $300-500
billion in losses from two hurricanes “because of lower
threats from North Korea” and “hurricane relief”.
Now the market goes to new highs AGAIN even after
North Korea conducts a NEW missile “test”.
I am going ALL IN LONG. I hope an asteroid crashes
into the Atlantic and causes a 100-foot tsunami that
wipes out Hartford and kills 20,000. Bingo! DJI up 800.
Then the tsunami shock wave causes a West Coast
rift in the San Andreas fault, opening up a mile wide
crater from Seattle to San Diego, with San Francisco
swallowed up and 10 million deaths. BUNGO! DJI up
15,000 points to the long-anticipated 40,000 level.
Gold falls ro $36 an ounce and silver to $1.25.
Meanwhile, the hedge funds, the Fed, and Citibank
and Yours Truly reap ten years of profits in 10 days!
Stocks are is easy when you know it’s a RIGGED GAME!
It’s rigged until it’s not. Only the riggers know when it suits them best to pull the rug from underneath everybody…prolly when everybody is sucked in and believes it will be rigged forever.