August 22, 2017

Futures pointing to further declines

The anticipated short-term decline finally came today and the major indices we follow (with the exception of the S&P (SPY)) are firmly entrenched in neutral territory. As I write this futures are lower across the board. This will obviously help out our current condor position and should give us some breathing room for the moment. As I always do, I will look at our position to see if any adjustments make sense at this juncture. Most likely, I will sit tight with our current position, but I always want to see what the market is willing to offer.

As for the ETF Extremes I am sitting comfortably on the sidelines until a high probability set-up comes my way. Even with my recent short-term bearish bias I was still somewhat uncomfortable about taking a position. I am certainly never in a hurry to place a trade. As I always say, this is a marathon, not a sprint.

However, this is why I decided to show my subscribers how to trade Iron Condors. They present an opportunity to take advantage of the market during times of uncertainty.  The increase in premium over the last month has afforded me the opportunity to choose a much wider range so unless we see a significant move (whether it is bearish or bullish) occurs over the next few weeks the current positions should prove to be profitable.

Please do not hesitate to email me with any questions or comments regarding our strategies or the blog.

Overbought/Oversold levels for March 27, 2007

  • SPY – 66.3 (neutral)
  • DIA – 57.5 (neutral)
  • IWM – 58.8 (neutral)
  • QQQQ – 56.7 (neutral)
  • OIH – 78.9 (overbought)
  • GLD – 62.2 (neutral)

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