Technical analysts will tell you that an RSI over 70 suggests an index or security is ‘overbought’. An RSI under 30 suggests an index is ‘oversold’.
About Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.
You know you live in a strange time when a shrinking economy and a weaker currency causes a 7% surge in a stock market. But this is Japan we’re talking about.
Once the great engine of global growth, China becomes the great force behind global deflation.
If you’re still eating dinner, a bottle of Malbec makes almost any stockmarket rout more bearable. Such was the case on Friday.
Reward yourself for your virtue by watching the spectacular landing by Space-X’s Falcon 9 rocket earlier this week.
It’s all part of the trend towards automation, more ‘intelligent’ technologies, and the dislocations they cause in the labour market and in global power politics.
How desperate are investors now in a low-growth, low-interest rate world? They’re lending money to one of Europe’s most free-spending governments and getting negative interest on the loan. By ‘negative interest,’ yes, I mean they’re paying to loan short-term money to the Italians.
Technology is changing our relationship with work at ever faster rates. This creates structural dislocations in the labour market which show up in GDP numbers. As investors, our challenge is to understand this change, try and forecast it if we can, and then profit from it with some tactical risk taking.
What are the real motives of the European Union today? It may have started as a peace project. But it’s turned into a power project. To oppose the EU is not to be ‘Eurosceptic.’ It’s to be a realist about the nature of centralised power.