Stocks finished the week up. Barely. The kind of win you claim at Thanksgiving dinner when you need to pretend your portfolio isn't a crime scene.
But some names got overbought. Technical indicators flashing red. RSI through the roof. The stuff that makes retail traders check their Robinhood app at 3 a.m. and think they're Warren Buffett because a line crossed another line.
Overbought means too many people bought. Simple as that. Price went up fast. Momentum indicators say it went too far too fast. Will it correct? Maybe. Will it keep ripping higher because nothing matters and the market is just a casino where the roulette wheel landed on black fifteen times in a row? Also maybe.
The article won't tell you which stocks. That would be useful. Instead you get a headline that promises names and a summary that says "a couple big names" like we're playing f*cking Guess Who with your retirement account.
Here's what happened. Investors saw green candles. Got excited. Bought at the top. Tale as old as time. The same people who sold everything in March are now piling into overbought stocks in August because the chart looked pretty and someone on Twitter with a laser-eyed profile picture said it was going to the moon.
Overbought doesn't mean sell. It just means the rubber band stretched. Could snap back. Could stretch further. Technical analysis tells you what happened. Not what happens next. That's the joke. The whole thing is reading tea leaves while pretending the cup is a Bloomberg terminal.
Those "couple big names" probably ripped 15% in a week and now every genius who bought Friday is refreshing their brokerage app wondering why their calls are worthless Monday morning.
Photo by Ishant Mishra on Unsplash
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