The article talks about three companies in the industrials sector that might not do well in the near future. The writer uses a tool called RSI to measure how fast these companies are moving compared to their prices. When the RSI is high, it means the company might be overvalued and could lose value soon. ZIM Integrated Shipping Services is one of those three companies that people should watch out for because they made a deal with another company called Hoopo Systems Ltd. Read from source...
- The title is misleading and clickbait, as it implies that all three stocks are guaranteed to perform poorly in the future. A more accurate title would be "Top 3 Industrials Stocks That Have High Momentum But Also Show Signs Of Weakness".
- The author uses vague and ambiguous terms such as "ticking portfolio bombs", "flashing a real warning", and "could be" without providing any concrete evidence or data to support their claims. These terms are subjective and emotional, rather than objective and rational.
- The author relies heavily on the RSI indicator, which is a simple and lagging technical analysis tool that does not account for other factors such as fundamentals, earnings, dividends, valuation, etc. The RSI can be manipulated by market makers and traders who use it to create fake trends or signals.
- The author fails to mention any positive aspects of the stocks, such as their growth potential, competitive advantages, innovation, or financial performance. This creates a one-sided and biased view of the stocks that does not reflect their true value.
- The author also fails to provide any historical context or comparison to previous market conditions or trends. For example, they do not mention how these stocks performed during the pandemic, the recession, or other crises. This makes it hard for investors to judge if these stocks are really overvalued or undervalued based on their current momentum.