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You are here: Home / ConnorsRSI / Oversold Around the World

Oversold Around the World

August 20, 2013 by Larry Connors

The last time the market has had a 2-day cumulative ConnorsRSI reading (the past two days added together) of under 30 was on June 24 and the Fed proceeded to step in and launch a 5 week upward move. Whether this occurs again remains to be seen but no matter how one measure this, the market is oversold.

On a bigger picture my three concerns are:

1.       The 2-3 day plunge in a number of global markets (look at India (IFN) and Indonesia (EIDO)) along with longer term bear markets in many countries. On the bright side of this, if you are using any of the bear market trend following strategies in The Machine, you’re having a very good run here.

2.       The fact that the U.S. is not yet showing capitulation (the sell-off is a bit too orderly and good bottoms are rarely orderly.)

3.       The losses in the bond markets are finding their way into equities, especially the higher dividend paying stocks. Should interest rates continue to climb, there will  be continued selling in these stocks.

Everything but the metals are oversold and right now everyone around the globe is looking for the Fed to step in as they did in late June. We’ll see if history repeats itself but it may take a few more days to get their attention.

The above excerpt is from Larry Connors’ Daily Battle Plan – A professional-grade trading information service that will help you understand the quantitative metrics behind each day’s market conditions and how they point to selective strategies for high-probability trades.

To take a free trial to Larry Connors Daily Battle Plan and receive his market insights and ETF trade set-ups for the upcoming trading day, please click here.

Filed Under: ConnorsRSI, Recent Tagged With: ConnorsRSI, Daily Battle Plan, Featured

About Larry Connors

Larry Connors has over 30 years in the financial markets industry. His opinions have been featured at the Wall Street Journal, Bloomberg, Dow Jones, & many others. For over 15 years, Larry Connors and now Connors Research has provided the highest-quality, data-driven research on trading for individual investors, hedge funds, proprietary trading firms, and bank trading desks around the world.

Larry has been published extensively, with titles like How Markets Really Work, Short Term Trading Strategies That Work, High Probability ETF Trading, and The Connors Research Trading Strategy Series including our latest Guidebook High Probability Trading with Multiple Up & Down Days.

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