August 2, 2014

No Post Tonight

There will not be a post tonight or tomorrow (most likely). I am taking my twice a year break from the blog to rejuvenate. However, if we do move into an overbought situation tomorrow I will post and we could actually see a trade (to the downside) in both of the Extremes strategies. So stop by just in case. Have a great! Andy … [Read more...]

Just Another Reason To Consider The ETF Extremes Options Strategy

Today, as I was sitting on the sidelines not affected by the panic, I pondered why more people were not subscribers to my ETF Extremes strategy. Is it greed, a lack of understanding, a need to trade frequently? I expect that it is all of the above. As I stated in my weekly newsletter today: First, I would like to point out that while the market has moved decisively lower during 2008 the ETF Extremes has moved roughly 45% higher on only 5 signals. Yes, patience pays. The ETF Extremes strategy continues to outperform the major benchmarks by a sizable margin. By staying diligent and waiting for high probability setups I have been able to reap a 147.8% profit with a win ratio of 85% (17 out 20 winning trades). Of course, if I started … [Read more...]

Overbought-Oversold for September 26, 2008

Here are the overbought-oversold readings as promised. Unfortunately, due to unforeseen circumstances I will not have the weekly newsletter available until tomorrow. Have a great night! Andy Overbought-Oversold levels for September 26, 2008 ETF Extremes Options Trading Strategy * S&P 500 (SPY) - 50.6 (neutral) * Dow Jones (DIA) - 54.9 (neutral) * Russell 2000 (IWM) - 47.3 (neutral) * NASDAQ 100 (QQQQ) - 42.7 (neutral) Sector ETF Extremes Options Strategy * Biotech (IBB) - 63.2 (neutral) * Consumer Discretionary (XLY) - 46.8 (neutral) * Health Care (XLV) - 48.4 (neutral) * Financial (XLF) - 59.4 (neutral) * Energy (XLE) - 35.7 (neutral) * Industrial (XLI) - 35.7 (neutral) * Materials (XLB) - 28.9 … [Read more...]

Back Sunday

I am taking off for the weekend (to NYC), but don't fret I will have the overbought-oversold numbers on Sunday as well as the Weekly Newsletter (for all of you that are newsletter subscribers). I hope all of you have a wonderful weekend! Take care, Andy … [Read more...]

10 Year Fibonacci Retracement Levels on the NASDAQ 100 (QQQQ)

I am going to do things a bit different over the next few days. I want to show the Fibonacci Retracement levels for the benchmark ETFs I follow in the ETF Extremes options strategy. We can reference these levels as we go along and when certain important levels are hit, especially when they coincide with an overbought or oversold levels. I will also be presenting more Fib charts going forward with different time frames, but I will keep it confined to the ETFs I follow for the strategies so please do not ask for additional fib charts. By the way have you checked the performance of the ETF Extremes strategy lately. It is up 147% since its inception over 30 months ago. Bear market, bull market, neutral, the ETF Extremes doesn't care. 10 … [Read more...]

Still Waiting

It was a lackluster session today. Volume was weak as most traders do not want to take a position especially an overnight position for fear of the worst. Yes, the market is still waiting to hear the final details (if any) from the bailout plan. Until then I expect to see similar price action going forward, with a downside bias. The major benchmarks have yet to move in a oversold state which is a bit surprising, so I am still sitting patiently on the sidelines. As I mentioned yesterday, there are a few oversold reading in the Sector ETFs I follow, namely consumer discretionary (XLB) and retail (RTH). While the two have amde it through my initial screen they have yet to come close to a signal in my proprietary overbought/oversold … [Read more...]

1932 Ban On Short Sales

1932-ban-on-short-selling

As always, Jason Goepfert of Sentimentrader has provided us with more insightful charts. he was kind enough to allow me to publish his latest chart along with some of his insightful commentary. I think you will find the information below extremely enlightening. Jason offers a service that is second to none. Give it a try! Feb 15, 1932 COMPTON ATTACKS 'FALSE' SHORT SALES Deals for Next Day's Delivery Are Unfair. Feb 18 CALLS 'BEARS' PERIL TO RECONSTRUCTION W.R. Perkins Tells Senators Gravest Menace to Congress's Steps Lies in Short Selling. CHARGE HIRED PROPAGANDA Rumors, True or False, Are Spread, He Says -- Dr. S.S. Huebner Defends 'Stabilizing' … [Read more...]

Retail Sector Hits Short-term Oversold State

Short post tonight. First I would like to point out that the upside gaps in all of the major benchmark ETF that we follow here have officially closed. It looks like the historical tendencies lived up to their billing once again. Congrats to those of you who write in and stated handsome profits from the phenomenon. I don't trade based solely on historical or seasonal tendencies, but with a near overbought reading and a large upside gap that went unclosed Friday the probability of a decline today increased substantially (as stated in my post from Sunday). Congrats again! As always, I have updated daily overbought-oversold readings. The only ETF that is near an extreme is the retail sector ETF (RTH), but it still has a bit further to go … [Read more...]

Gap Tendencies and the Options Expiration Aftermath

Below is the large gap from Friday. As I have stated repeatedly in the past, gaps in the major benchmarks have a tendency to fade sooner than later especially when they are as large as the one from Friday. Couple the gap with the historical tendency for weakness on the day following options expiration and the probability of a declining day Monday increases substantially. I just wanted to point this out before Monday's open. I hope all of you had a wonderful weekend and newsletter subscribers please check your emails for the September Expiration report. As always, if you have any questions or comments please do not hesitate to email me or use the comment section at the bottom of the most recent post. … [Read more...]

Overbought-Oversold for September 19, 2008

I will be back later this weekend with a post market/premarket summary. Also, I will also be sending out the expiration report to newsletter subscribers. Look for that late Sunday. Have a great weekend! Overbought-Oversold levels for September 18, 2008 ETF Extremes Options Trading Strategy * S&P 500 (SPY) - 58.1 (neutral) * Dow Jones (DIA) - 59.8 (neutral) * Russell 2000 (IWM) - 67.0 (neutral) * NASDAQ 100 (QQQQ) - 54.2 (neutral) Sector ETF Extremes Options Strategy * Biotech (IBB) - 55.5 (neutral) * Consumer Discretionary (XLY) - 50.3 (neutral) * Health Care (XLV) - 49.8 (neutral) * Financial (XLF) - 65.2 (neutral) * Energy (XLE) - 67.3 (neutral) * Industrial (XLI) - 50.9 (neutral) * Materials (XLB) - 67.5 … [Read more...]