Ovoboby

AAA

DEFINITION of 'Ovoboby'

A condition in which a market is considered to be overbought, overly bullish, overvalued and is experiencing upward pressure on Treasury yields. If the market falls into this condition, it is thought to be a warning sign to investors of potential near-term market downturns along with the potential for longer term negatives.

INVESTOPEDIA EXPLAINS 'Ovoboby'

This term was coined by John Hussman, a fund manager and market researcher, to reflect certain market conditions. The market is considered to be overbought when the S&P 500 is at a four-year high and is also trading 5% higher than the levels of the index six months ago. The market is considered to be overly bullish when the bullish sentiment of advisors within the Advisors Sentiment Index, created by Investors Intelligence, is above 53%. The market is considered to be overvalued when the price/peak earnings of the S&P 500 are above 18. The yields in the market are considered to be facing upward pressure when the yield on a three-month Treasury is higher than it was six months earlier.

RELATED TERMS
  1. Yield

    The income return on an investment. This refers to the interest ...
  2. Fully Valued

    A stock whose price analysts believe reflects the market's recognition ...
  3. Overbought

    1. A situation in which the demand for a certain asset unjustifiably ...
  4. Overvalued

    A stock with a current price that is not justified by its earnings ...
  5. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  6. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
Related Articles
  1. Investing

    Where can I find the P/E ratios for the Dow and S&P 500?

    When it comes to valuing stocks, the price-to-earnings (P/E) ratio is one of the oldest and most frequently used metrics. It is calculated by taking a company's share price and dividing this ...
  2. Trading Strategies

    Market Strength Tutorial

    Here you can learn about some of the indicators that traders and brokers use to determine the direction and strength of the market's present trend.
  3. Technical Indicators

    What are the best technical indicators to complement the Negative Volume Index (NVI)?

    Explore other technical indicators that can be used when designing a trading strategy that incorporates the negative volume index.
  4. Trading Strategies

    How do I build a profitable strategy when spotting a Golden Cross pattern?

    Learn the primary trading strategies that traders and market analysts employ when they have identified the occurrence of the golden cross pattern.
  5. Technical Indicators

    How are Golden Cross patterns interpreted by analysts and traders?

    Learn why the golden cross is considered a major technical indicator of a bull market in an individual stock, market index, or other trading market.
  6. Charts & Patterns

    What is a common strategy traders implement when using the Elder-Ray Index?

    Read about the important buying and selling conditions that are recommended by Dr. Alexander Elder when using his Elder-Ray index.
  7. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
    Professionals

    What is a SWOT Analysis?

    SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is a management tool used to identify strategies for success. It may be used to guide individual thinking, group ...
  8. Technical Indicators

    Why is the Bullish Belt Hold useful for traders?

    Discover one of the most common candlestick chart trading patterns, the bullish belt hold. Learn why this pattern is considered a bullish trend reversal.
  9. Charts & Patterns

    How is accumulation area calculated?

    Explore the use of accumulation areas in the analysis of traded securities. Learn about on-balance volume and its role in identifying accumulation areas.
  10. Charts & Patterns

    How is the Accumulative Swing Index calculated?

    Learn how the accumulative swing index is calculated using swing index. Explore absolute value and how it is used in the calculation of the ASI.

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center