mephisto

1 Comment

    • ON: Mon Feb 25th 12:30 PM
      Commented on:
      Most Overbought/Oversold Stocks
      marcos:

      A fundamental-analysis guy might answer: "as long as it wants to." (Ex: super-cat events do not care what your statistical model predicts for an individual security.)

      However, since stock prices cannot go negative, a more correct answer might be: "as long as it wants to... or until it hits zero for enough days that zero finally falls within 1 standard deviation of the 50day moving average. At which point-- congratulations-- your security is no longer oversold."

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