• All
  • Videos
Bear Bull 2
Adam Sarhan

Week-In-Review: Stocks Bounce Back From Deeply Oversold Levels

The market bounced last week from deeply oversold levels and investors digested a slew of earnings and some economic data. For the past two weeks, I have repeatedly said the market is oversold and due to bounce. I did not know the market would bounce as much as it did but that is what happens in deeply oversold markets. Why? Because you have two concurrent forces at play: First you get a lot of short covering (people who are short have to buy their positions back if they want to exit their shorts) and second you get the buy the dip crowd that shows up. Now the key is to see if this bounce can continue or if it is another short-lived rally in a longer downtrend.

Read More »
Adam Sarhan November 2, 2018

© ChartYourTrade | Contact us: website@chartyourtrade.com

Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.

Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.

Terms of Service