This is an interesting chart because we’re moving to overbought levels on the McClellan Oscillator ($NYMO) however that isn’t necessarily a bad thing. We often have more upside once we hit these levels before we roll over and correct. This is where you have to be nimble with your positions as last week was the easy money on the long side. LOL. I don’t really think there is anything that can be described as easy money in Wall Street. I wouldn’t assume that once we’re in oversold/overbought levels that the market is going to immediately snap back in the other direction.

nymo

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One Response to “McClellan Oscillator Rising”

  1. Abdul Rahim Says:

    Given so many investors and traders out there hoping that the market crash again after reaching to oversold level sooner or later and all those Roubini types working hard to put fear in the market each time it does not work their way, I think the market now have enough maturity and fuel to hold on to this gain solidly. So far earnings are strong and market anxious to go higher. I hope to see the market going to new trading range (level) leaving the current range (level) far behind.

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