Reblog: Overbought, Oversold, and Oscillators


Overbought and Oversold 

Many pundits out there throw out the words overbought and oversold when it comes to stocks or the major stock indices. Is there a way to keep track of overbought and oversold?

Oscillators 

There are many technical indicators (special indicators by looking at the stock charts) to help determine oversold and overbought conditions. Oscillators are the most popular. At one point, a stock (or index) is overbought, and then at another point, it oscillates back to oversold.

S&P Oscillator 

One popular Oscillator is the S&P (Standard and Poors) Oscillator, which is a proprietary Oscillator. In Jim Cramer’s ‘Real Money: Sane Investing in an Insane World’, Jim Cramer mentions the proprietary S&P Oscillator as one way to spot a market bottom. He says that it costs around $1000 to subscribe.

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stockarchitect February 5, 2018

bottom indicators / market bottom / oscillators / overbought / oversold / SPX oscillator / stock investing / Stock Market / stock market correction / The Tech Farm /

Reblog: A Few Things I Learned Watching a Hedge Fund Manager Lose $4 Billion on One Trade


Maybe you also followed this story. Or maybe not. But basically a really big hedge fund manager, one of those guys who people quote and probably talk about at Harvard Business School, placed a super big bet on this company called Valeant.

Valeant is a pharmaceutical company trying to cure problems with skin and infectious diseases. They actually also own Bausch Lomb so that means they have a giant eye care business.

This hedge fund manager made a bet that Valeant would keep growing their business, diversifying, and acquiring. He once even called them the next “Berkshire Hathaway.”

This thesis turned out to be wrong. Like really wrong. The company crashed. People started to call Valeant out for jacking up the prices of their drugs. They also were apparently doing some dicey bookkeeping things. Just Google “Philidor Valeant scandal” if you want to learn more about that.

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stockarchitect June 14, 2017

Bausch and Lomb / Finance / Investing / Medium.com / Pharmaceutical / Stock Market / Trading / Valeant /