Frequently Asked Questions

Market Lab Report
Does the fact that Stochastics for the general market (eg. SPY and QQQQ) are approaching oversold concern you?

In trending markets, overbought becomes more overbought, so selling or reducing just because the market is overbought is a conservative approach that may result in subpar returns, or at least less than stellar returns. In a sideways market, this type of strategy can work, but the homeruns are hit by staying and/or adding to positions in trending markets.

Published: Sep 8 2010, Modified: Apr 4 2012