From Oversold to Overbought

Nobody knew what was going to happen, yet it was inescapable that something would happen to bring about a strong market advance. A week ago, the Arms Index numbers were extremely oversold, reflecting deep concern, yet experience has repeatedly taught us that just such a condition is the precursor to an often explosive rally.

And even in the absence of news, the beginnings were apparent on Monday, with the big market advance. So yesterday's news was to be anticipated, if not the specifics. The rally has come in as expected and carried to about where we had anticipated. (A bit further, actually.) So now what?...428 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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