Daily Stock Market Commentary with an emphasis on ETFs and stock options.

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High-Beta Sectors Lead the Way - Overbought/Oversold as an Indicator

Posted on June 19, 2008

The tech-heavy NASDAQ 100 (QQQQ) and small-cap Russell 2000 led the led the oversold bounce today. It was the stereotypically volatile day that often occurs during the week of options expiration.Today, along with many others, people ask or comment about how overbought/oversold indicators are no big deal and that overbought/oversold states can remain irrational for longer than you can remain solvent .Well, I guess in a way that is true, but unfortunately it is a rather simplistic way to approach trading and unfortunately, a frame of mind that often displays the lack of experience needed to...

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etf , expiration , game , options , overbought , oversold , trading