These Stocks, Sectors Are Oversold, but Opportunity Remains

[] Today's market commentary from TradingPub is here! To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] Join Celeste Lindman at 1 p.m. ET on Thursday to learn how to build the ultimate dividend portfolio — [and get her top 7 dividend stocks!]( [] These Stocks, Sectors Are Oversold, but Opportunity Remains Before you dive headfirst into buying stocks left and right as the market surges higher Tuesday, I want to draw your attention to two important metrics for the weeks ahead. Beware Overbought Conditions There are two metrics that we use to measure overbought conditions in the financial markets. And right now, tech stocks are already in this position. Following a correction on the S&P 500 that ended three weeks ago, investors have moved fast and furiously into FAANG stocks that comprise the largest weight of the S&P 500 (tracked by the SPY ETF) and the Nasdaq 100 (QQQ). So, what are these metrics? Take a look at the Relative Strength Index (RSI) daily reading of the Technology Select Sector SPDR Fund (NYSEArca: XLK). The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100, indicating overbought conditions above 70 and oversold below 30. [] Now, let’s turn our attention to the second reading. The Money Flow Index (MFI) is a momentum oscillator that measures the inflow and outflow of money in a security. It ranges from 0 to 100, identifying overbought conditions above 80 and oversold below 20. MFI incorporates both price and volume, providing insights into buying and selling pressure. Now, as you can see, the XLK is clearly in overbought territory at the moment on our daily readings. And the time to have gone long happened back on Nov. 2, when the RSI, MFI and other two indicators turned positive at the same time (MACD and ADX). Since we’re back in overbought territory, traders who are going long now need to set hard, tight stops to protect against any downturn. With tech stocks leading the way, the QQQ is also back in overbought territory while the S&P 500 is now sitting just shy. The RSI on the S&P 500 is now over 70, but the MFI sits under 80, signaling that opportunity could remain for this rally to continue. Looking Out Ahead Today’s Consumer Price Index (CPI) came in lower than expected, setting off a massive rally for the S&P 500, Nasdaq 100 and Dow (DIA). But this snapback rally started three weeks ago when the RSI and MFI for the S&P 500 were in oversold territory. As you can see, the RSI and MFI both pushed into oversold territory at the end of October. Since then, dip buying and optimism around interest rate cuts have accelerated, on top of short-covering among hedge funds. [] These rallies from oversold to overbought and back again has been the norm of the last few months. With global liquidity improving thanks to stimulus packages out of Japan and China, this market continues to press higher despite an incredible amount of net-short targeting. Keep a very close eye on these indicators — and other critical ones that we watch like insider buying and momentum. I recommend that you use a simple tracking site like FinViz.com or StockCharts.com to keep an eye on the S&P 500 and Russell 2000. With algorithms dominating trading, they continue to buy back into the markets in oversold territory and take profits when we get overheated. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Very Few Traders Use This Buy Signal Whether you’re a day or a swing trader, or a long-term investor… There’s one stock market pattern that needs to be on your radar as we close out 2023… It’s the [No. 1 pattern traded by a former Wall Street Vice President…]( And I found it to be incredibly useful in times of uncertainty… It’s the same pattern that tipped him off to the dotcom crash and the Great Financial Crisis… Now, I’m not saying a major market crash is coming… But what I am saying is… This pattern can be used to help keep you out of trouble if markets remain rocky… But not just that… It can be used to identify the market's strongest moving stocks both to the upside and the downside. [Just Go Here and Check This Out]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the Garrett {NAME} channel and you’re set: [9_jjnFuAvno0MjNh]( See you there! Garrett [] [] [] Join Celeste Lindman at 1 p.m. ET on Thursday to learn how to build the ultimate dividend portfolio — [and get her top 7 dividend stocks!]( [] These Stocks, Sectors Are Oversold, but Opportunity Remains Before you dive headfirst into buying stocks left and right as the market surges higher Tuesday, I want to draw your attention to two important metrics for the weeks ahead. Beware Overbought Conditions There are two metrics that we use to measure overbought conditions in the financial markets. And right now, tech stocks are already in this position. Following a correction on the S&P 500 that ended three weeks ago, investors have moved fast and furiously into FAANG stocks that comprise the largest weight of the S&P 500 (tracked by the SPY ETF) and the Nasdaq 100 (QQQ). So, what are these metrics? Take a look at the Relative Strength Index (RSI) daily reading of the Technology Select Sector SPDR Fund (NYSEArca: XLK). The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100, indicating overbought conditions above 70 and oversold below 30. [] Now, let’s turn our attention to the second reading. The Money Flow Index (MFI) is a momentum oscillator that measures the inflow and outflow of money in a security. It ranges from 0 to 100, identifying overbought conditions above 80 and oversold below 20. MFI incorporates both price and volume, providing insights into buying and selling pressure. Now, as you can see, the XLK is clearly in overbought territory at the moment on our daily readings. And the time to have gone long happened back on Nov. 2, when the RSI, MFI and other two indicators turned positive at the same time (MACD and ADX). Since we’re back in overbought territory, traders who are going long now need to set hard, tight stops to protect against any downturn. With tech stocks leading the way, the QQQ is also back in overbought territory while the S&P 500 is now sitting just shy. The RSI on the S&P 500 is now over 70, but the MFI sits under 80, signaling that opportunity could remain for this rally to continue. Looking Out Ahead Today’s Consumer Price Index (CPI) came in lower than expected, setting off a massive rally for the S&P 500, Nasdaq 100 and Dow (DIA). But this snapback rally started three weeks ago when the RSI and MFI for the S&P 500 were in oversold territory. As you can see, the RSI and MFI both pushed into oversold territory at the end of October. Since then, dip buying and optimism around interest rate cuts have accelerated, on top of short-covering among hedge funds. [] These rallies from oversold to overbought and back again has been the norm of the last few months. With global liquidity improving thanks to stimulus packages out of Japan and China, this market continues to press higher despite an incredible amount of net-short targeting. Keep a very close eye on these indicators — and other critical ones that we watch like insider buying and momentum. I recommend that you use a simple tracking site like FinViz.com or StockCharts.com to keep an eye on the S&P 500 and Russell 2000. With algorithms dominating trading, they continue to buy back into the markets in oversold territory and take profits when we get overheated. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Very Few Traders Use This Buy Signal Whether you’re a day or a swing trader, or a long-term investor… There’s one stock market pattern that needs to be on your radar as we close out 2023… It’s the [No. 1 pattern traded by a former Wall Street Vice President…]( And I found it to be incredibly useful in times of uncertainty… It’s the same pattern that tipped him off to the dotcom crash and the Great Financial Crisis… Now, I’m not saying a major market crash is coming… But what I am saying is… This pattern can be used to help keep you out of trouble if markets remain rocky… But not just that… It can be used to identify the market's strongest moving stocks both to the upside and the downside. [Just Go Here and Check This Out]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the Garrett {NAME} channel and you’re set: [9_jjnFuAvno0MjNh]( See you there! Garrett [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States