The Swing From Short-Term Oversold In January To Overbought Stocks Today by Eric Bush, CFA – Gavekal Capital Blog
Stocks have swung from being very oversold in January to overbought today. 82% of developed market stocks are trading above its 50-day moving average. Back on January 20th, only 6% of stocks were trading above its 50-day moving average. DM stocks are as overbought today as they have been at any point in over two years (since October 2013). DM Americas stocks are the most overbought as 87% of stocks are trading above its 50-day moving average. 78% of DM EMEA stocks are trading above its 50-day moving average and 80% of DM Asia stocks are trading above its 50-day moving average.
Its not just developed market stocks that are on fire either. 82% of emerging market stocks are trading above its 50-day moving average. Looking at EM stocks by region, 93% of EM Americas and EM EMEA stocks are trading above its 50-day moving average while 79% of EM Asia stocks are trading above its 50-day moving average.
