August 22, 2017

A Few Sectors Moving Near Extremes

Finally, a few of the sectors I follow for the Sector ETF Extremes Options Strategy have pushed near an extreme state. Our last signal was on 7/23 when we made roughly 9.8% on an XLF trade. Since then I have been waiting patiently for a set up and now another one might be coming to fruition.

Real Estate (IYR) , Energy (XLE) and Utilities (XLU) are currently on my radar after today’s trading session. If all goes well we will hit an extreme in one or more of those sectors over the next couple days.

As for the Gap Fade optoins strategy, we came close to a trade today, but the NASDAQ 100 (QQQQ) only gapped down by $.01 and quickly closed at the open so no trade occurred. The last month has been rather stagnant for gaps in the QQQ’s, but as well all know that can change quickly.

Remember what I went over last week. The last 5 trading days of August are rather weak so as we approach the last days of August pay attention to where the major benchmarks and sector ETFs are trading. I will be looking for potential trade in anything that is overbought at that time. As always I will keep you all posted of my thoughts when the time comes.  Stay tuned.

Enjoy the sunshine. It is finally here in VT, thankfully.

Have a wonderful night!


Overbought-Oversold levels for August 21, 2008

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 45.1 (neutral)
* Dow Jones (DIA) – 40.0 (neutral)
* Russell 2000 (IWM) – 56.3 (neutral)
* NASDAQ 100 (QQQQ) – 38.7 (neutral)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 27.8 (oversold)
* Consumer Discretionary (XLY) – 44.4 (neutral)
* Health Care (XLV) – 40.7 (neutral)
* Financial (XLF) – 33.8 (neutral)
* Energy (XLE) – 74.4 (overbought)
* Industrial (XLI) – 35.3 (neutral)
* Materials (XLB) – 66.2 (neutral)
* Real Estate (IYR) – 28.2 (oversold)
* Retail (RTH) – 52.4 (neutral)
* Utilities (XLU) – 72.8 (overbought)

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