August 19, 2017

Is the Russell near a short-term top? OIH is back in oversold territory. Iron Condor Update.

After a nice snap-back move today in the market, notably the Russell (IWM), moved three out of the four major market indices into an overbought to very overbought state. A few more of our other proprietary indicators suggest that a short-term reprieve (1-5 days) should be expected. There is a chance that we could move slightly higher over the next day or two, but I think any rally will be quickly sold-off, at least of over the short-term.

OIH is back down to oversold levels. I will keep a close eye on how OIH reacts over the next day or two because if it can cycle down into a very oversold state I might be tempted to buy some calls. OIH can move substantially over the course of one trading day so I want to be patient at this juncture. Hopefully, OIH will cooperate much like it did on January 12, 2007.

Many of you wrote in to thank me for making you aware of the oversold levels and I certainly appreciate the gesture, but there is no need for thanking me. You, the individual trader/investor pull the trigger all I do is try to make you aware of extreme levels when they occur in the market. I am just glad that the blog is providing many of you with worthwhile advice.

I have also decided to try and talk about money management issues a little more in the blog and particularly in the newsletter and research section of the Insider’s page. I think this is a topic that often goes overlooked and in my opinion it is the most important aspect of becoming a successful investor/trader.

Furthermore, I would like to inform all of you interested in the New Short Iron Condor strategy that I will be sending out details about the service over the next week or two. I have been overwhelmed by the response. We can’t wait to make this strategy an integral part of our investment newsletter service.

and we will do our best to save you a spot once we make the portfolio live, which will occur after the March expiration cycle.

Overbought/Oversold levels for February 20, 2007

  • SPY – 73.8 (overbought)
  • DIA – 70.8 (overbought)
  • IWM – 82.6 (very overbought)
  • QQQQ – 64.3 (neutral)
  • OIH – 29.4 (oversold)
  • GLD – 39.6 (overbought)

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Have a great night!