A company called Benzinga wrote an article about two big companies that might lose money soon. These companies are called Alibaba Group Holding and another one is not mentioned in the title, but you can find it in the text. The article talks about something called RSI which helps people decide if a stock is good or bad based on how fast it goes up or down in price. Read from source...
- The title of the article is misleading and clickbait. It does not clearly state that it is about stocks that may plunge in the next quarter, but rather implies a more urgent or imminent threat to investors. A better title would be "Top 2 Consumer Stocks That May Experience a Significant Drop in Price This Quarter".
- The author uses vague and subjective terms like "warning" and "momentum", without defining them or explaining how they are relevant for the analysis. These terms appeal to emotions and do not provide any objective or factual information to support the claims made by the article.
- The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up versus days when prices go down. However, the author does not explain how he calculated the RSI values for each stock, what time frame he used, or what threshold he applied to determine whether a stock is overbought or oversold. Without this information, the reader cannot replicate or verify the analysis.
- The author does not provide any fundamental or technical reasons why these two stocks may plunge in the next quarter. He does not mention any earnings reports, revenue projections, market trends, or competitive advantages that could affect the performance of these stocks. He also does not compare them to other stocks in the same sector or industry, or to a benchmark index like the S&P 500. The article is based solely on subjective and speculative opinions without any factual backing.
- The author uses a date of May 3, 2024, which is four years into the future. This is an arbitrary and unrealistic assumption, as no one can predict with certainty what will happen to the stock market in such a long time span. It also creates confusion and inconsistency, as some of the comments and reactions to the article may be outdated or irrelevant by the time they are published or read. The author should use a more current date or a range of dates that reflects his actual analysis period.