Category: technicals

RSI declining – final warning sign 1

RSI declining – final warning sign

This is a very expensive and overbought market which few participants believe can decline meaningfully. That alone is dangerous, but now we see signs of technical exhaustion, such as the downtrend in RSI on...

Market Top Developing, December 2013 0

Top developing

An overbought market that has kept the vast majority of investors and traders in the bull camp for several weeks is to be viewed with suspicion. When prices also begin to lose their upward...

Extreme Risk Equities 0

Extreme risk in equities

We now have a syndrome that has rarely been followed by significant market gains, and almost always followed by a decline: Overvalued: Shiller PE above 18 (it’s 23) Overbullish: High “bullishness” and low “bearishness”...

Hussman: Market risk is extreme 2

Hussman: Market risk is extreme

John Hussman is the rare mutual fund manager who uses technicals and hedging to minimize risk and maximize returns during a full bull-bear cycle. He hedged up in 2000 and 2007 to preserve his...