The market is overbought - Weekly Market Roundup 3rd Feb 2019
Channel: Trading Profitably
Date: 03/02/2019

The market is overbought - Weekly Market Roundup 3rd Feb 2019.

Instruments Discussed: $USO/$CL, $GLD/$GC, $SPY, $QQQ, $DIA, $IWM, $X, $AKS, $EXP, $ASNA, $ENR, $PKE, etc.

The market is in a longer-term downtrend. It has recovered from the past sell-off for six weeks in a row. Still, it could not take out the previous week. The drop of three weeks has not been covered in a recovery spanning six weeks. That shows that though the market recovered, it is not aggressively bullish. Several market ETFs are overbought. Many stocks are overbought as well. 

Under such a situation, it is safer to wait and see where the market turns before deciding your next swing trade. And all the swing trades need to be at a low-risk entry point. It is not easy to find such low-risk entry opportunities in an overbought market.

As usual, we also carried out the sector-industry-fundamental-technical top-down analysis to locate low-risk high probability trade opportunities where forces from industry, fundamental and technical are aligned together.

These and much more to be ready for the coming week. Time to hit the play button.

This is a demonstration of the way Superior Profit Community members trade Stock, Stock Futures, and Stock Options to generate consistent profit from Stock Market.