Sometimes, we might think of market price action as a rubber band.

It stretches in both directions, and whatever potentially overstretched has the tendency

to snap back in the opposite direction.

This concept, though, not a perfect analogy for market price action by any means, has

personally fascinated me for years.

So our team did some research on 286 tickers to see if markets becoming overly stretched

in one direction, versus, and compared to their different short and long-term moving

averages, can help us learn anything about reversals and momentum, and what we found was not

what I expected.

So let's dig in together.

Hey everyone, this is Kirk here again from Option Alpha.com working every single week to make

this the most popular investing podcast offered online because it's based on one thing and

one thing only, and that's helping you consistently place smarter trades.

So thank you so much for tuning back in.

Welcome back to show number 227, where we are going to look at basically 20 years of moving

the average data, and what that teaches us about stock reversals and momentum.

It's definitely not what I expected.

When I actually had the team start doing this research, I thought to myself, I pretty

much know what's going to come out of this.

I did not know exactly what was going to come out of this.

So it's not what I expected, but at the end of the day, it actually makes sense when

you start thinking about it.

...