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Everyone Has It Wrong

Everyone Has It Wrong

Analyzing "Overbought" Signals & Implications

Caleb Franzen's avatar
Caleb Franzen
Dec 24, 2023
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Everyone Has It Wrong
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Investors,

With the Nasdaq-100 gaining +20% in less than two months, many investors have reached out to ask me something along the lines of:

“Isn’t this market extended? Aren’t stocks overbought?”

$NDX shown using 1hr candles since late-October 2023

There are three reactions that I have to the topic of being extended/overbought:

  1. Extended/overbought relative to what?

  2. Extended/overbought for who?

  3. If we agree that it is extended/overbought, who says that isn’t bullish?

Today’s premium newsletter will focus on this topic specifically, providing a nuanced and necessary analysis about whether the market is extended/overbought and the implications going forward. Regardless of whether you’re a short-term trader, long-term investor, or even involved in other markets like crypto, this analysis will help to diagnose broader market conditions and how to carefully dissect this topic into actionable takeaways.

To read the remainder of this report and unlock the full benefits of a Cubic Analytics membership, consider upgrading to the paid membership using the link below:

Also, happy holidays!

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