Bazinga! Are Oversold Stocks About to Explode with Rebound Energy?!

The Unpredictable Dance of the Market (It's Not String Theory!)

As a theoretical physicist I find the behavior of the stock market baffling. At least with quantum mechanics there are predictable probabilities even if reality itself remains stubbornly undefined until observed. But the market? It's like trying to apply the Butterfly Effect to my carefully curated apartment arrangement. One day investors are euphoric the next they are running away like a frightened flock of prairie chickens when I try to explain the intricacies of multi body gravitational interactions. The recent whipsawing as they call it due to President Trump's reciprocal tariffs is a prime example. It's all quite irrational unless of course you apply Game Theory which admittedly does make it *slightly* less infuriating.

Reciprocal Tariffs: A Catastrophic Deviation from Nash Equilibrium!

These tariffs you see are a clear violation of Nash Equilibrium. Everyone loses! It's like Leonard trying to play three dimensional chess; the outcome is always suboptimal. The on again off again nature of these tariffs only exacerbates the problem. It's enough to make a logician weep! One moment smartphones and chips are spared; the next they're not. It's chaos! Utter chaos! The S&P 500 is down nearly 10% in 2025. As I have said repeatedly 'I'm not insane my mother had me tested!'

RSI: A Slightly Less Primitive Metric Than Reading Tea Leaves

Now apparently some misguided souls believe they can predict market movements using something called the Relative Strength Index or RSI. An RSI below 30 suggests a stock is 'oversold' and ripe for a rebound. It's hardly as elegant as say deriving the mass gap in Yang Mills theory but I suppose it's marginally more scientific than consulting a psychic which is as we all know pseudoscience. Unless of course one could prove the existence of a psychic field and develop a predictive algorithm. But I digress.

Global Payments: A Potential Financial Phoenix (Not Related to Jean Grey)

One such potential phoenix rising from the ashes of its own financial misfortune is Global Payments. Their shares have plummeted but their RSI suggests they might be due for an uptick. Analysts those creatures of consensus opinion have a 'buy' rating on the stock and their price targets suggest a significant upside. Of course relying on analyst opinions is akin to relying on Howard Wolowitz's pick up lines; the success rate is statistically insignificant. They recently announced plans to acquire Worldpay. Perhaps this acquisition will increase the potential upside? One can only speculate...or at least calculate using advanced algorithms but those details are far too complex for you to grasp.

AbbVie: Pharmaceutical Rebound (Let's Hope They're Not Using Placebo's!)

Then we have AbbVie a pharmaceutical company that has also suffered recent losses. But their RSI also indicates a possible rebound. The fact that the tariffs on imported drugs were temporarily paused may provide some relief. Of course relying on the whims of a single politician is hardly a sustainable strategy but I suppose in the absence of a unified grand unified theory of market behavior one must make do with the tools at hand. Analysts also predict upside but again take that with a grain of salt and perhaps a dose of skepticism.

Pro LIVE: An Event You Might Consider (If You Can Tolerate Crowds)

CNBC is hosting an event at the New York Stock Exchange. It is purportedly a valuable source of information and networking opportunities with people that know more about markets and investing than the average human. I would be lying if I said that there are not things I would rather do. I would however encourage you to attend if you are looking to gain additional insight and understanding. Just remember to maintain a safe distance to minimize the risk of exposure to potential pathogens.