The stock began the day at RSI 75.3, well into STONEWALL territory. What would the stock do if the market as a whole happened to move substantially higher as indeed happened?
Would the market strength be sufficient to carry Pfizer well beyond RSI 76 or was that stone wall really a STONE WALL?
I think that the verdict is in.
No verdict is in. You used to talk about RSIs at 70 and lower as presaging a fall. We saw how well that worked.
Today is a data point in your favor. Many more would be needed to be meaningful. Something is pushing Pfe down today. It may be the RSI, but it may also be some newsletter questioning last week's huge rise on not so special earnings, or pharma in general. Some other pharma stocks, notably Abt and Jnj are also down, despite the market being up nicely, while Mrk is only up slightly. So something is going on and I won't just assume that it is the RSI whose level you keep raising to pick a point when it becomes a meaningful predictor.
ONLY ABT was down yesterday; all other domestic pharmas were up. ABT was down on reports that the Justice Department would get involved in lawsuits for off-label marketing.
You can rationalize all you want but the fact is that whenever Pfizer rallies get into the 75 area, they run into a stone wall. It's downright foolish to try and deny it.
The acid test is what happens when the overall market does well right after such Pfizer readings are seen. This is the third time now within two weeks that the market has been strong right after RSI 75 or so and yet Pfizer turned tail and headed down at least short-term every time.
While you are foolishly denying, I'm profitably rolling out my long calls.
You're not about to win any arguments when the objective, observable evidence is totally against you.
Then, there are things like this to move the needle just a tad.
64- straw wall nosebleed
66- stick wall nosebleed
68- stonewall nosebleed
70- STONEWALL nosebleed
74- SUPER STONEWALL nosebleed
78- NUCLEAR HOLOCAUST nosebleed
Facts are stubborn things.
The above classifications are subject to change.
I am giving myself a mulligan on the upcoming Nuclear Holocaust, I don't care if it comes.
I'll just roll over and wait for society to rebuild. After all, it's a once in a lifetime unexpected travesty, so it doesn't count.
The problem is the moron assumes the RSI controls the price of a stock, rather than the RSI simply showing what the strength of the stock hs been.
I wonder if he understands what the RSI of the ^IXIC was for the period from August 1998 to January, 2000. Record highs day after day and month over month for about 5 quarters.
RSI is nothing but a technical indicator and has nothing to do with the fundmentals.