July 21, 2017

Archives for August 2009

Short-term Overbought/Oversold Readings for August 28, 2009

I will be back this weekend on some commentary involing the strategies including the Iron Condor this weekend. Overbought-Oversold levels for August 28, 2009 ETF Extremes Options Trading Strategy * S&P 500 (SPY) - 76.3 (overbought) * Dow Jones (DIA) - 71.9  (overbought) * Russell 2000 (IWM) - 58.8 (neutral) * NASDAQ 100 (QQQQ) - 69.5 (neutral) Other ETFs * Ultra Long (SSO) - 71.2 (overbought) * Ultra Short (SDS) - 26.7 (oversold) … [Read more...]

Back in Action

Well, the 7/30 gap finally closed on the S&P 500 (SPY) only to have it gap to the uypside several days after. Since then the amrket has not been able to gain much ground although it has certainly tried its hardest to make the push, but the overhead resistance and short-term overbought state seem to be much for the market benchmark. I am seeing the potential for a trade in the ETF Extremes strategy. It has been months since our last trade so as expected many of you are getting a bit impatient (including myself). Remember, patience pays. This is a marathon and not a sprint. The performance speaks for itself. As for the Iron Condor strategy, well, I have decided to postpone it for a few more weeks. i plan on offering an e-book with … [Read more...]

SPY Gap – Yet to Close

The gap from 7/30 has yet to close, so again not much has changed with my short-term outlook. I still think the market will decline to close the gap before any meaningful advance occurs. Also, The Iron Condor discussion that I have promised over the past few days is currently in the works. I hope it will be worth the wait. Until then I will be sitting back and waiting until another extreme is reached. Overbought-Oversold levels for August 9, 2009 ETF Extremes Options Trading Strategy * S&P 500 (SPY) - 62.4 (neutral) * Dow Jones (DIA) - 67.5  (neutral) * Russell 2000 (IWM) - 62.9 (neutral) * NASDAQ 100 (QQQQ) - 60.5 (neutral) Other ETFs * Ultra Long (SSO) - 61.6 (neutral) * Ultra Short (SDS) - 34.4 (neutral) … [Read more...]

Market Rises Again – But For How Long?

Overbought-Oversold levels for August 9, 2009 The returned to its recent glory on Friday, but if you look at the S&P 500 (SPY) chart closely you will quickly notice that the major index has struggled mightily with some stingy overhead resistance since the gap higher back on 7/30. Until the gap fills I am still not confident in a sustained surge going forward. Once the gap fills, well, we need to wait and see....but until then I think we might just be craving out the top of a new range. As for the Iron Condor strategy, I will be back later with a short discussion on Iron Condors and how I intend to use them as part of my new trading strategy. Until then.... Have a nice afternoon! Andy ETF Extremes Options Trading … [Read more...]

Expecting Further Declines

The gap on 7/30 in the S&P 500 (SPY) has yet to close and until it SPY moves down to the high from 7/30 ($98.09) my confidence in an advance with conviction is just not there. All of the major indexes have moved back to a neutral state with the exception of the DOW (DIA). That alone tells me that further short-term declines should be anticipated. I know I have promised an Iron Condor discussion (and believe me it is coming), but I think I want to wait until the timing is more appropriate. I intend to open up an Iron Condor strategy soon, but I want all of my readers to fully understand how the strategy works and how I intend to trade it using the most important aspect of the strategy - position-sizing. Stay … [Read more...]

Still Overbought

SPY is still overbought and the gap from last week still remains so I expect to see a further short-term decline over the next few sessions. I will be back tomorrow with the Iron Condor discussion I had promised a few days back. Stay tuned! Overbought-Oversold levels for August 5, 2009 ETF Extremes Options Trading Strategy * S&P 500 (SPY) - 82.1 (very overbought) * Dow Jones (DIA) - 71.0  (overbought) * Russell 2000 (IWM) - 78.8 (overbought) * NASDAQ 100 (QQQQ) - 64.3 (very overbought) Other ETFs * Ultra Long (SSO) - 89.9 (very overbought) * Ultra Short (SDS) - 9.9 (very oversold) … [Read more...]

Very Overbought – Short-term Decline Looks Imminent

The market as a whole is "very overbought" which typically means a short-term reprieve is imminent. It is quite likely that we could see our forst trade in almost six months in the ETF Extremes Strategy. One thing is certain, the probability of a short-term decline looks very likely and I will be taking a close look at a trade tomorrow morning. Of course, this depends on what the futures are telling me tomorrow morning at the open. Overbought-Oversold levels for August 3, 2009 ETF Extremes Options Trading Strategy * S&P 500 (SPY) - 90.8 (very overbought) * Dow Jones (DIA) - 90.8  (very overbought) * Russell 2000 (IWM) - 88.5 (very overbought) * NASDAQ 100 (QQQQ) - 82.2 (very overbought) Other ETFs * Ultra Long (SSO) - … [Read more...]

Back By Popular Demand

Yes, I am finally back after a long hiatus from the daily options blog. Quite a few of you have requested that I return to my daily writing ( after over two years of daily posts) and I have decided to oblige. Partly, due to the ongoing success of my overbought/oversold readings and how they have led to the success of the ETF Extremes Strategy. It has been months since our last trade in the ETF Extremes Strategy, yet we are still up over 12% on the year and our average gain per trade since the portfolios inception over three years ago is 7.8% with a win ratio of 82.6 (19/23 trades). The max loss is only (-17.6%) while the max gain is 22.1%. As I have always stated patience pays in this strategy and as you can see the performance over the … [Read more...]