There are no sure trading bets. Markets that are overbought can continue to remain in overbought territory for extended periods (B). Eventually markets do fall back to normal levels (A). In the case of Rocket Markets, they fall back to the surface. The markets on the Rocket list are simply over extended and in a position to reverse on a short term basis.
The Fast and the Furious:
Rocket markets are those that may have gotten a little ahead of themselves on a short-term basis. No doubt these markets are still in bullish trending phases but they have also moved into overbought territory making, them candidates for long side profit taking. Shorting these markets is not recommended as the strength of their trends are still quite strong. In other words don’t fight the trend. If these markets are able to fall from their overbought territory, look for opportunities to reestablish long positions.
To assist in finding opportunities, our Dip Market List provides candidate markets that remain in bullish trending phases but that have also fallen into short-term over sold territory.
Rocket Market Definition:
- Bullish trending phase based on our Trend Level indicator.
- Short-term overbought based on our Elastic Level indicator.
Rocket Markets: Bullish Trends that are also Strongly Overbought
Our watch list information is strictly provided for educational purposes only. As always … trade at your own risk and analysis.
Additional links worth reviewing:
Check out what the systems are doing
All trading involves risk. Leveraged trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. The past performance of any trading system or methodology is not necessarily indicative of future results.
Our strategies have not been developed based on knowledge of or with reference to your particular circumstances, such as financial position, goals, risk-reward preferences, tax situation, brokerage arrangement, investment or trading experience, and so forth. Hence no content or model published here constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. More