Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Overbought vs Oversold: Strength Shifts To Emerging Equity Markets

Published 08/04/2014, 01:12 AM
Updated 07/09/2023, 06:31 AM
CT
-
ZW
-
ZC
-

Chart 1: Weekly RSI levels indicated no assets are overbought right now!

Overbought-Oversold

Last time I updated the Overbought vs Oversold chart was in late June of this year. One of the observations I made in that post was that there were on asset classes oversold (with weekly RSI below 30). The closest we got in June was Wheat, with weekly RSI at 38.

Interestingly, with the recent rise in volatility, the conditions are now changing and today we find that we have no major global asset overbought (weekly RSI above 70). Furthermore, while in June US and EU developed equity markets were outperforming, today we find that relative strength is with the emerging equity markets, and in particular Asia. Finally, Cotton and Corn are extremely oversold at present, so contrarians pay attention!

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.