Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Genco Shipping & Trading Ltd (NYSE:GNK) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $6.64 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 38.1. A bullish investor could look at GNK's 29.9 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. The chart below shows the one year performance of GNK shares:
GNK operates in the Shipping sector, among companies like Golar LNG Partners LP (NASDAQ:GMLP) which is trading flat today and has a current RSI reading of 60.1. Below is a three month price history chart comparing the stock performance of GNK, versus GMLP.
The ETF Channel Flexible Growth Investment Portfolio is designed to seek growth for investors —
anywhere and everywhere. The key to the program is our portfolio strategy allows us complete flexibility in terms of asset
allocation as there are no predetermined guidelines as to the level of stocks, bonds, cash, regions, countries, sectors,
commodities, or even asset classes in the portfolio! In short, this is a completely flexible portfolio designed to follow
the performance trail wherever it leads us.
This Article's Word Cloud:BuffettChannelDefinitionETFsGMLPIndexInvestmentKnowOversoldRelativeShippingStrengthWarrenWednesdayWhataboutaboveallowsassetbelowbullishchartcurrentdesignedfearfulgreedyinvestorlevellookopportunitiesotherothersoversoldperformancepointportfolioreadingsharesharesshortstockstocksthattodaytradingweekwhatwhenwhichwith
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.