Is a signal near?

Over the last few days I have written about the short-term overbought-state of the tech-heavy NASDAQ 100 (QQQQ) as indicated by the RSI Wilder (2). Several other short-term indicators I follow are also leaning towards the bearish camp. I wanted to see a lrge gap higher today and that looked like it was going to come to fruition after the Microsoft news, but then the negative jobs report came out an hour before the open and eliminated my chances of fading what would have been an extreme condition.

After an early morning sell-off the market was able to slowly build some momentum into the close to finish near the highs of the day.  A gap higher Monday will most likely trigger a signal in the ETF Extremes strategy. Yes, I said it, a signal! Yippee!

I also hope to add another strategy to the mix over the weekend which should be available for auto-trade at Thinkorswim early next week. Hopefully, my web guy can accomplish what he needs to do over the weekend.

Have a great weekend and be ready early Monday! I hope we see a large gap opening.

Overbought/Oversold for February 1, 2008 

S&P (SPY) – 71.7 (overbought)

Russell 2000 (IWM) – 76.1  (overbought)

Dow (DIA) – 73.0 (overbought)

Nasdaq 100 (QQQQ) - 63.7 (neutral) 

We work hard to bring you our latest views, opinions and research on a daily basis. If you are a loyal reader and find our thoughts useful please show us your support by joining our newsletter service. 

If you want to an in-depth, step-by-step look at how we trade our strategies purchase our acclaimed E-Book! With your purchase you will receive Two Free Months of our investment newsletter plus unlimited access to our Insider’s page enabling you to follow our strategies as you learn. What do you have to lose? Join today!