Historically Oversold

By Lawrence G. McMillan

If the title of this article looks familiar, it’s because we’ve used it once before – on Volume 17, No. 19, published on October 10, 2008.  So, one can say that the current market is at least as oversold as it was on that date, in the dark days of the financial crisis.  In looking at that previous article, I had a quote that has now been proven wrong.  Regarding the technical conditions that existed then, during the 2008 financial crisis, I said, “...when it’s all over, you won’t see this situation again for generations.”  Yet, here we are, less than three years later, and most of the technical indicators are at oversold levels on a par with – or even exceeding – those of October-November 2008.  Everything is not the same, of course.  For example, the safe havens now include gold and the Swiss Franc, and... 

Learn how to navigate this Historically Oversold market in The Option Strategist Newsletter Volume 20, Issue 15 (published last night, 8/11/2011). 

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