In a recent post about TAG Oil as a good “buy” opportunity, Forbes online says “…investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. ” They point towards one way of measuring fear levels via the Relative Strength Index (RSI), which measures stock momentum on a 100-point scale.
“A stock is considered to be oversold if the RSI reading falls below 30. A bullish investor could look at TAO’s 28.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side….”
Indeed. Since we can’t control a volatile global stock market, we can at least appreciate these opportunities when they come. See the full Forbes story here.