June 23, 2017

Chop Chop

What a day! Heavy selling pressure stepped into the market early and often and the sharp decline looked like it might continue throughout the trading day. However, towards the end of the day a rumor floated through the ears of Wall Street; the Federal Reserve, scheduled to meet next week, could initiate a rate cut before the already highly anticipated meeting.

The news immediately led to an intra-day rally, which was compounded by shorts quickly covering their positions. At the close, the Dow (DIA) had pared its intra-day losses to finish the trading day flat.

The flat day led to another day of neutral readings in the benchmarks we follow. As far as short-term edges go, there isn’t one. Of course this could quickly change over the next few sessions. But for now, we will patiently wait on the sidelines for an extreme, allowing our theta-driven strategies to reap the rewards of the recent range-bound environment.

Overbought/Oversold for October 24, 2007

S&P (SPY) – 38.8 (neutral)

Russell 2000 (IWM) – 42.0 (neutral)

Dow (DIA) – 36.1 (neutral)

Nasdaq 100 (QQQQ) – 58.0 (neutral)

We work hard to bring you our latest views, opinions and research on a daily basis. If you are a loyal reader and find our thoughts useful please show us your support by joining our newsletter service. We currently follow 3 stock options strategies in our investment newsletter, the ETF Extremes, SPX Short Iron Condor and SPY Diagonal LEAP.

If you want to an in-depth, step-by-step look at how we trade our strategies purchase our acclaimed E-Book! With your purchase you will receive Two Free Months of our investment newsletter plus unlimited access to our Insider’s page enabling you to follow our strategies as you learn. What do you have to lose? Join today!

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