The Fast and the Ferrous:

Rocket markets are those that may have gotten a little ahead of themselves on a short-term basis. No doubt these markets are still in bullish trending phases but they have also moved into overbought territory making them candidates for long side profit taking. Shorting these markets is not recommended as the strength of their trends are still quite strong. In other words don't fight the trend. If these markets are able to fall from their overbought territory, look for opportunities to reestablish long positions. To assist in finding opportunities, our Dip Market List provides candidate markets that remain in bullish trending phases but that have also fallen into short-term over sold territory.

Rocket Market Definition:

1. Bullish trending phase based on our Trend Level indicator.
2. Short-term overbought based on our Elastic Level indicator.

Rocket Market

There are no sure trading bets. Markets that are overbought can continue to remain in overbought territory for extended periods (B). Eventually markets do fall back to normal levels (A). In the case of Rocket Markets they fall back to the surface. The markets on the Rocket list are simply over extended and in a position to reverse on a short term basis.