We’re starting to see overbought readings hit in several of the major indices and international ETFs.
My only hesitation at this juncture is the incredibly low volatility in the market. As I stated a few days ago, options premium has reached an 8 year low. the VIX is hovering around 12 and VXX and UVXY are in an extreme oversold state. As a result, I had to take advantage of the “very oversold” reading in volatility today by placing in UVXY using a bull put spread. The set-up was just too perfect to pass up. And while the trade might be a success (no trade is guaranteed) I could not ask for a better set up and entry. We will see soon enough how this one turns out.
If you are a believer in a statistical approach towards investing please do not hesitate to try my options strategies. I use simple mean-reversion coupled with probabilities for each and every trade. Give it a try, it’s free for 30 days.
Also, due to the enormous amount of requests over the past week I have decided to keep my annual deal available for several more days. Thanks again for all of the support.