Grahame Summers an investment strategist with OMNI whom Kitco links to, this week has stated that the market is WAY overbought as evidenced by the NASDAQ recently hitting an RSI of 75;
http://www.kitco.com/ind/Summers/aug112009.html
Well, have a look at the NASDAQ today.
"As you can see, the NASDAQ recently hit an RSI of 75. This is the highest reading we’ve seen in nearly two years. In fact, the last time the NASDAQ had an RSI of 75 was October 10, 2007, right before stocks entered their first major leg down in the Financial Crisis, losing 55% in six months.
As you can see, the NASDAQ has hit an RSI of 75 or higher five times in the last 12 years. Every time, the market collapsed soon after with an average drop of -22%. In several cases, stocks suffered a full-blown CRASH."
Only trouble is I cant see any record of the NASDAQ RSI hitting 75 in the last 5.5 years- on Bigcharts at least. Is this guy the full quid or am I missing something?
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- rsi way overbought
rsi way overbought
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