2007-01-22 07:22:35 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
There is a direct correlation in the number of IPOs and an overbought or undersold market. The number of companies that IPO will peak in an overbought market because so-called "investors" will be willing to pay high prices. Conversely, the number of IPOs are small in a bear market since "investors" are scared and not willing to buy new issues.
2007-01-22 08:16:42 · answer #1 · answered by sirtitan45 4 · 0⤊ 0⤋
There is only one way to tell whether a market is overbought or oversold definitively. Wait about 6 months and see whether it went down or up. Honestly, the rest is just a guessing game.
2007-01-22 17:18:17 · answer #2 · answered by mugwumper 2 · 0⤊ 0⤋
A good indicator when the BULL MARKET is almost over is when the 7/11 clerk gives you stock tips.
2007-01-22 17:30:58 · answer #3 · answered by The other GUY 2 · 0⤊ 0⤋
Use the technical indicator called Stochastics. Learn about it under technical indicators at www.stockcharts.com.
It's a great indicator and must be used with other indicators, such as MACD and Moving Averages for better results.
2007-01-22 16:37:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋