August 17, 2017

Expecting Further Declines

The gap on 7/30 in the S&P 500 (SPY) has yet to close and until it SPY moves down to the high from 7/30 ($98.09) my confidence in an advance with conviction is just not there. All of the major indexes have moved back to a neutral state with the exception of the DOW (DIA). That alone tells me that further short-term declines should be anticipated.

I know I have promised an Iron Condor discussion (and believe me it is coming), but I think I want to wait until the timing is more appropriate. I intend to open up an Iron Condor strategy soon, but I want all of my readers to fully understand how the strategy works and how I intend to trade it using the most important aspect of the strategy – position-sizing. Stay tuned!


Overbought-Oversold levels for August 6, 2009

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 67.5 (neutral)
* Dow Jones (DIA) – 72.1  (overbought)
* Russell 2000 (IWM) – 52.8 (neutral)
* NASDAQ 100 (QQQQ) – 49.2 (neutral)

Other ETFs

* Ultra Long (SSO) – 67.3 (neutral)
* Ultra Short (SDS) – 30.7 (neutral)