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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