August 22, 2017

Dow Overbought – ETF Extremes Strategy Up 6.6% for 2010

As I stated earlier this past week, we had our first trade for 2010 in the ETF Extremes Options Strategy. The performance can be found at the following link: This is certainly a wonderful way to start out the New Year and continue the “patience pays” mentality of trading this options-based strategy.

Tomorrow brings options expiration and as we all know the bulls typically reign supreme. However, the bullishness is often short-lived as the bears historically pull the market lower the trading day following options expiration.

With the Dow (DIA) in an overbought state and the Biotech sector (IBB) in a ‘very overbought’ state I am keeping the historical bearish tendency in mind for the makings of a potential trade in the Sector ETF Extremes strategy over the next day or so. Stay tuned for more info.

I hope to begin a forum on Collective2 to make my trading fodder easier to follow. I will let all of you know once I initiate the forum.

Anyway, thanks for the positive feedback and I promise to continue to trade the strategy the way it was intended: with patience. One thing is certain – the performance over the past three years speaks for itself.

If you have any questions please do not hesitate to email me.



Overbought-Oversold levels for January 14, 2010

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 69.4 (neutral)
* Dow Jones (DIA) – 76.3 (overbought)
* Russell 2000 (IWM) – 66.9 (neutral)
* NASDAQ 100 (QQQQ) – 58.5 (neutral)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 82.4 (very overbought)
* Consumer Discretionary (XLY) – 56.8 (neutral)
* Health Care (XLV) – 76.9 (overbought)
* Financial (XLF) – 69.1 (neutral)
* Energy (XLE) – 61.4 (neutral)
* Industrial (XLI) – 75.3 (overbought)
* Materials (XLB) – 45.7 (neutral)
* Real Estate (IYR) – 51.9(neutral)
* Retail (RTH) – 38.1 (neutral)
* Utilities (XLU) – 51.6 (neutral)

Ultra Extremes

* Ultra Long (SSO) – 30.3 (neutral)
* Ultra Short (SDS) – 68.9 (neutral)