Fear among investors continues – Will the Fed go too far?

June 6, 2006 · Print This Article

The market continued its recent slide today as investors remain frustrated over the uncertainty surrounding inflation. Another decent market-wide decline tomorrow and we could be back in oversold territory, which means there should be some decent set-ups over the coming days. That is, if we reach oversold territory. Support levels held up again today in the S&P which is a decent sign we could start to see a move to the upside over the short-term. There are also a few other bullish indicators that are signaling an extreme.

I have been contemplating opening up a new strategy, one that involves SPX. The strategy is a basic Iron Condor Strategy (I mention it on the insiders page of my site). This strategy works extremely well in range-bound markets and would offer another way to diversify your options portfolio. I would love to hear any feedback regarding this idea. If the response is decent we could be offering this strategy over the next few months. Also, we are talking about opeinng up our service to other brokerages as well. We absolutely love Thinkorswim, but we have had several emails from interested subscribers that wish to have our service auto-traded at their respective brokerage. Furthermore, we are moving ever closer to our subsciber limitations which means we will have to add interested subscribers to a waiting list. There is still plenty of time to get in, but if we continue to receive the response we have had over the last few months we could be shutting out new subscribers in a matter of months.

As always any feedback is welcome and appreciated.

RSI Wilder (5) for June 6, 2006