Sentences with phrase «oversold market»
An "oversold market" refers to a situation in which the price of a certain asset or investment has declined rapidly and excessively. It suggests that the market has become overly pessimistic and that the asset may be undervalued, presenting a potential buying opportunity for investors. Full definition
Investors sell at the lows because they forget the tendency of deeply oversold markets to recover, but the evidence is clear, time after time, that selling after extreme one - way declines is a poor decision.
hussmanfunds.com
Given how oversold the market was entering this week it's not surprising to see some stabilization.
With leading stocks getting punched in the face over the past week (especially the past two days), there isn't much to get excited about on the long side of the stock market right now, despite oversold market conditions.
There's a tendency for oversold markets to unpredictably enjoy fast, furious, prone - to - failure advances to clear those oversold conditions, so those shouldn't be ruled out, but until we observe some compelling improvement in market internals, we're likely to remain fully hedged against the impact of market fluctuations.
The reasons behind the rally are a lot smaller than the run we had today; chalk it up to a previously oversold market.
These deeply oversold markets create an authentic «Blue Chip Rally» where they have only occurred six times over the past five years and are historically great entry points back into equities.
It also provides high - quality information necessary for defining trends, support and resistance levels, overbought and oversold market levels, possible trend shift points, etc..
Remember: a very oversold market (Litecoin & Bitcoin) that can hardly bounce = bearish.
I put the odds on a short term bounce here with the extreme bearishness of investor surveys, how oversold the market is, and the high level of put open interest.
Many traders have argued that the recent advance is nothing more than a «dead cat bounce» in an oversold market.
I liquidated my short position on the NAFTA / auto news because the market had been very focused on Canada's vulnerably to Trump's protectionist bombast and any «let up» could trigger a rally in an oversold market.
Such a divergence is a characteristic of an oversold market environment.
The Nymex crude oil futures market on Thursday saw strong price gains that were mostly due to short covering and a technical bounce from an oversold market.
Duh, but I was dumb — the oversold market rallied when it learned that the Treasury had its back.