Stocks went up. Energy stocks went up more. Now they're overbought. This is what passes for news in 2026.
Overbought means too many people bought something. The RSI is above 70. The stochastic oscillator is pegged. Every mouth-breather with a Robinhood account saw a green candle and decided they were John D. Rockefeller. They piled in at the top because a YouTube thumbnail told them energy was "the next big thing." It's always the next big thing. It's never the current big thing when you're buying it.
The energy sector ripped higher this week for reasons that don't matter. Oil could be up. Gas could be up. A CEO could have sneezed during an earnings call and algos interpreted it as bullish. Doesn't matter. What matters is the chart now looks like a vertical line, and vertical lines always end the same way. They bend.
Retail traders will hold these names all the way back down. They'll check their app every fourteen seconds. They'll watch their unrealized gains turn into unrealized losses, then realized losses, then a margin call. They'll post in the daily thread asking if they should average down. Someone will tell them yes. That person also lost money.
Technical indicators exist to tell you when you're late. When the RSI screams overbought, it means you missed it. The smart money already left. They sold to you at the top, collected your cash, and went to Nobu. You're holding their bags now. You're the exit liquidity. You're the punchline.
The headline says these stocks are overbought. It should say these stocks are overowned by people who will panic sell them in three days.
Photo by Ishant Mishra on Unsplash
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