April 19, 2014

Neutral means “no go”.

The market is still in a neutral state and has yet to breach and oversold or overbought state. I would like to see the market move into an oversold state because I think this could be the signal we have been waiting for over the past several months. Remember, patience pays! Again, I am still working on my book about Iron Condors so stay tuned. Have a great night! Andy Overbought-Oversold levels for September 30, 2009 ETF Extremes Options Trading Strategy * S&P 500 (SPY) - 48.9 (neutral) * Dow Jones (DIA) - 45.9  (neutral) * Russell 2000 (IWM) - 42.1 (neutral) * NASDAQ 100 (QQQQ) - 54.8 (neutral) Other ETFs * Ultra Long (SSO) - 49.3 (neutral) * Ultra Short (SDS) - 48.5 (neutral) … [Read more...]

Short-term Reprieve Likely According to Overbought Reading in QQQQ

While the S&P (SPY) and Dow (DIA) have been able to push lower and out of their respective "very overbought" readings, the NASDAQ 100 (QQQQ) has not followed suit. The tech-heavy sector has actually held quite steady over the last few sessions, which I think bodes well over the longer-term, I still feel as though we are due for another short-term reprieve due to the "overbought" status of the QQQQ. Once that occurs the picture becomes a bit more unlcear. We will have to tackle that if/when it comes. Until then...... stay tuned!!! Also, I should have my book on Iron Condors completed in the next few weeks. It should be an interesting read and should help those of you who love to trade the neutral-based options strategy. I hope all … [Read more...]

Market Due For Short-Term Reprieve

As you can plainly see from the "Overbought-Oversold" levels below, the market has moved into a short-term "very overbought" state. The Wilder RSI (2) reading for the Nasdaq 100 (QQQQ)  and Russell 2000 (IWM), as expected, has also moved into extreme territory. Both index ETFs have pushed above 99 which signals a short-term decline is right around the corner. The probability of such a move is overwhelmingly in the bears favor short-term, however, as we all know in trading there are no guarantees. Even so, when we have a reading this high, if you indeed trade extreme readings, well, it just doesn't get much better than a set-up like this one.  A bearish move looks imminent. I am still working on my book regarding Iron Condors and how to … [Read more...]

Market Back In An Overbought State

The market is back in an overbought state which means a short-term reprieve should be right around the corner. The Nasdaq 100 (QQQQ) has a Wilder RSI (2) above 98 which is a very good signal that we are due for a move lower over the coming days. Again, I apologize for the lack of posts recently, but I am in the middle of revamping the blog and working on my new e-book. Iron Condors and ETF Extremes here we come. Two options strategies that have proved to be wonderful performers over a long period of time, particularly the ETF Extremes. The performance speaks for itself. Stay tuned! Andy Overbought-Oversold levels for September 10, 2009 ETF Extremes Options Trading Strategy * S&P 500 (SPY) - 78.2 (overbought) * Dow Jones … [Read more...]