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