Has A "Tradable Opportunity" For Oversold Stocks Now Arrived? | Lance Roberts & Adam Taggart

**Lance Roberts** (0:00)
You're at pretty deeply kind of oversold levels on money flows. You're down to levels that normally kind of at least form, at least a short-term bottom. And again, I'm not talking, again, I won't be really clear. I'm not saying that the markets are getting set up here for a rally off the new highs, and you should just be, you know, completely risk on. I think there's a tradeable opportunity here because we have so much negative sentiment in the overall market. And again, when people are super negative, very worried about the markets, that's a great setup for the markets to do exactly the opposite of what you think.

**Adam Taggart** (0:37)
Welcome to Thoughtful Money. I'm Thoughtful Money founder and your host, Adam Taggart, welcoming you back here at the end of another week for another Weekly Market Recap, featuring my good friend, the well-rested and bottomless portfolio manager, Lance Roberts. How are you doing, Lance?

**Lance Roberts** (0:52)
Well, I don't know about well-rested, but yeah, we're back in studio.

**Adam Taggart** (0:58)
All right, well, you're back from your vacation, as we were talking about before we turned the camera on. No good vacation goes unpunished. You've been digging out. But we're glad you're back, even though Michael did a great job as your stand-in. I also use the term bottomless because it just seems like the market is just trying to find a bottom here, but just not quite finding one yet. So let's talk about that.

**Lance Roberts** (1:23)
I'll disagree with that point.

**Adam Taggart** (1:24)
You'll disagree with it?

**Lance Roberts** (1:25)
Yeah.

**Adam Taggart** (1:26)
Okay, good. Because starting about two weeks ago or so, there was a lot of talk of, hey, the markets have sold off, but they're very oversold and a snap back little bounce wouldn't be out of control or out of the ordinary. But the markets really just kind of zig and zagged from here. So what's going on? What's driving all this? And what do you expect to happen next?

**Lance Roberts** (1:49)
Well, I mean, as with anything, when you go through a correctional process, which is, again, that's all that's happened here. And again, lots of headlines out lately. And this is a really kind of critical thing that we need to discuss, I guess, probably more often than we do, is that human nature is that when something happens, we have to rationalize why it happens. And you know, it's interesting, we don't rationalize things when markets are going up. We're like, hey, markets are going up, it's great, blah, blah, blah. But as soon as you have a bit of a correction, then all of a sudden we've got to rationalize, oh, my, why are stocks correcting? Well, it's because it's recession risk, it's because of this, it's because of that, it's because of this other thing. And, you know, Trump said this.
And the simple reality, as is always the case, is the market is just buyers and sellers, and there are points, and again, when you go back to mid-February, you and I were talking about, sentiment is extremely bullish. Everybody's on the same side of the boat. You've got correlations between, you know, all assets pretty much at one, and so at some point, you're going to get a correction here. And, you know, that's what's happened. It's just simply that the as is always the case, you know, buyers live higher. I'm sorry, sellers live higher, buyers live lower. And so once seller and once the people that were buying go, you know what, maybe I need to, you know, step out of the market here. Buyers like, yeah, I'll buy from you. But it's going to be 10 percent lower. And that's what's been going on here is just simply a repricing of markets. And now we've got extremely negative sentiment. We've got extremely negative positioning on a lot of different fronts. Money flows are starting to turn positive. So the buyers that are now stepping in are the ones going, hey, you know what, there's some value here, and I'm going to pick those up.

**Adam Taggart** (3:38)
Okay. Well, let's get into the data early on this one then.
Because there's a number of the folks I've talked to again over the past couple of weeks have said, hey, who knows what's going to happen? But my best estimate is we're going to see some sort of decent balance here or short-term recovery. Because things are oversold, there was a chart that you put out probably about a week ago or so on Twitter that is in a recent article you wrote this week about how hard to expect the market to really roll over from here because retail buyers haven't stopped their buying. In fact, they're buying at pretty aggressive levels. But again, the price action has been trapped here. So what is the data telling us right now in terms of the extremity of oversolds and where we are? And one big question when you pull it up is, is the 200 DMA potentially now acting as resistance versus a floor?