August 17, 2017

Back before the opening bell

I apologize for the tardiness of the post. As I stated in the post earlier today there was an unforeseen circumstance that arose, but I am up early this morning so hopefully this makes it to you before the opening bell today.

I will be back with the SPY Diagonal LEAPS discussion later this afternoon.

Daily Commentary

Taking a look at the broader market the tech heavy QQQQ is still in a very overbought condition and coupled with weak seasonality ahead (end of September blues) probability still says that the upside is limited over the short-term and that a move lower is the more likely scenario.

As I take a look at the overbought/oversold levels below there are quite a few glaring overbought readings particularly in the internationals. Every international that we follow is in an overbought stage and 4 out of the 5 are sitting on the high end of a very overbought level. As I stated above for the QQQQ’s when readings hit this type very overbought state this often spells trouble for the upside over the short-term (1-5 days).

 

Overbought/Oversold for September 26, 2007

S&P (SPY) – 65.5 (neutral)

Russell 2000 (IWM) – 59.3 (neutral)

Dow (DIA) – 78.9 (overbought)

Nasdaq 100 (QQQQ) – 86.3 (very overbought)

Oil Services (OIH) – 53.7 (neutral)

Newly added ETF’s – We have decided to extend the following overbought/oversold reading on the community blog until next week. We will follow the readings in the Insiders’ page (subscriber’s only) starting 10/1.

Core Sector List

Financials (XLF) – 43.7 (neutral)

Energy (XLE) – 55.8 (neutral)

Cons. Cyclicals (XLY) – 49.7 (neutral)

Technology (XLK) – 85.3 (very overbought)

Health Care (XLV) – 69.2 (neutral)

Materials (XLB) – 81.4 (very overbought)

Industrials (XLI) – 66.3 (neutral)

Cons. Staples (XLP) – 71.3 (overbought)

Telecom (TTH) – 78.6 (overbought)

Utilities (XLU) – 68.6 (neutral)

Gold (GLD) – 62.1 (neutral)

International

FTSE/XINHUA China 25 (FXI) – 91.8 (very overbought)

Latin America (ILF) – 85.9 (very overbought)

MSCI EMU (EZU) –  77.2 (overbought)

Australia (EWA) – 87.8 (very overbought)

India (INP) – 87.2 (very overbought)

Commodities

Natural Gas (UNG) – 53.6 (neutral)

Agriculture (DBA) – 88.8 (very overbought)

Base Metal (DBB) – 67.6 (neutral)

Energy (DBE) – 42.7 (neutral)

Prec Metal (DBP) – 68.7 (neutral)

Okay, the plan is to follow a total of at least 25 major ETF’s is complete. Again, in the near future this list will only be available to subscribers to the newsletter/strategies on the Insiders’ page.  

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Andrew Crowder, Chief Investment Strategist, www.crowderinvestments.com