August 22, 2017

Fear Pushes Market Lower – Currently Oversold

All of the major market indices pushed lower today and into an “oversold” state. At this juncture, my preference would be to see the Wilder RSI (2) push below (at least) 5 before I make a move. The lower the RSI (2) to the better so, we shall see. One thing is certain a trade looks imminent. We all know that it has been a while so it will be a happy day if/when the trade occurs. Remember, as I always say “patience pays”. Just look at our historical performance. yes, it is easy to get caught up on the number of trades, but the overall performance is really the number you should be looking at for the most accurate results. Please email me if you have any questions.

Overbought-Oversold levels for October 1, 2009

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 21.7 (oversold)
* Dow Jones (DIA) – 23.2  (oversold)
* Russell 2000 (IWM) – 25.2 (oversold)
* NASDAQ 100 (QQQQ) – 24.7 (oversold)

Other ETFs

* Ultra Long (SSO) – 24.9 (oversold)
* Ultra Short (SDS) – 73.9 (overbought)