I will stand my ground.
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 Monday, shares of Joy Global Inc (NYSE: JOY) entered into oversold territory, hitting an RSI reading of 27.3, after changing hands as low as $52.89 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 60.7. A bullish investor could look at JOY’s 27.3 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 JOY share
the problem is, the s&p 500 and dow indices, etc. have run up so much that if they were to correct, joy global would get thrown out with the water. nevermind that we're closer to the 52-week lows than the 52-week highs, we're out of favor right now. looking to buy soon.