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The Market Ear with the madness of crowds.
Buy overbought at your own risk
Chasing longs with RSI at overbought levels, especially when it has been overbought for some time, has been a poor strategy. The last 2 times NDX RSI was at similar levels the index had a >5% setback over the coming weeks.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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