August 22, 2017

Fed Annoucement Around the Corner

The major benchmarks are still an oversold to near oversold state. Unfortunately, I need to see the underlying ETFs push lower into a short-term very oversold state before I will take a position.

There are also quite a few sector ETFs that have moved into a short-term oversold state, but again I would like to see a very oversold or extreme reading before considering taking a position.

Now we have the highly anticipated Fed policy announcement to contend with on Wednesday at 2:15 EST. My hope is that we see the a further short-term decline so that a signal is triggered in our two extreme portfolios.

Sorry for the late post. Have a great night.

Overbought/Oversold Levels for June 23, 2008

ETF Extremes Options Strategy

  • S&P 500 (SPY) –  20.5 (oversold)
  • Dow Jones (DIA) – 22.1 (oversold)
  • Russell 2000 (IWM) – 31.0 (neutral)
  • NASDAQ 100 (QQQQ) – 31.4 (neutral)

Sector ETF Extremes Options Strategy

  • Biotech (IBB) – 43.2 (neutral)
  • Consumer Discretionary (XLY) – 26.6 (oversold)
  • Health Care (XLV) – 31.2 (neutral)
  • Financial (XLF) – 21.8 (oversold)
  • Energy (XLE) – 65.4 (neutral)
  • Industrial (XLI) – 28.5 (oversold)
  • Materials (XLB) – 42.0 (neutral)
  • Real Estate (IYR) – 28.1 (neutral)
  • Retail (RTH) – 26.2 (oversold)
  • Utilities (XLU) – 57.9 (neutral)

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