Many technical analysts on the Street are highlighting the risk of a pullback for equities given short-term technical indicators have moved into overbought territory.
The mistake here, in my opinion, is obsessing over short-term trading indicators when there is a much bigger bullish trend just getting underway. In other words, don’t lose sight of the forest, or the longer-term bullish market cycle, for the trees, the shorterterm noise emanating from the media and Twitterati. The key point is that in strong uptrends, which I see developing here, trading indicators can stay overbought for extended periods, leaving investors who don’t participate staring at the back of the train as it leaves the station.
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