Overbought/Oversold/KSWW
Lentimen -
Here is one of my "can't predict the future" posts, which is appropriate right now:
This message board is mainly for fundamental analysis...what we think is VALUE.
I think TA is something you use to supplement fundamental analysis, not the other way around.
Many times there are two contradictory sayings for a given point in time.
"The early bird catches the worm" and "buy on the dips" seem appropriate for KSWW at this point in time.
"The early worm is caught by the bird" and "you'll get cut by the falling knife" are other sayings that could also be appropriate for KSWW at this point in time.
So which is it? None of can predict the future, so we don't know.
TA says it is oversold and we are dropping for that reason.
The fundamentals seem to show value (although I am swayed by your argument that a record backlog for a company in the construction industry isn't worth as much as a backlog in a different industry).
My feeling is that I am more of a "buy-n-holder" type than a "trader" type. Therefore, I have to put a lot more emphasis on fundamental analysis, and less on TA. Traders need to do the opposite.
