August 22, 2017

Major indices back in short-term oversold territory.


  • IWM – 1.4
  • QQQQ – 2.2
  • DIA – 3.5
  • SPY 1.5

The aforementioned are the current oversold levels of the major indices I follow. As you can see we have hit extreme levels, so I expect to see a short-term bounce over the next 1-2 days. I am currently playing IWM ( as seen in the prior post from earlier today) to take advantage of the high-probability set-up so we will soon see if Mr. Probability works in my favor. Each time IWM has hit levels this low (9/2/09, 5/7/10) we have witnessed a decent bounce in the Russell.

My Options Portfolio is currently up 30% since it was initiated back on 5/8/10 and I hope to continue the gains going forward. With a steady and disciplined approach I feel I can continue the gains, maybe not at this pace, but I never really set out to make 30% in a little over a month. Of course, I expect a few setbacks along the way, that is the nature of trading – losses occur. However, as a high-probability mean reversion trader I should be able to keep my win ratio high. As I write this the win ratio  for My Options Portfolio is 82.6% (19 out of 23 trades were winning trades). The portfolio has steadily climbed to 30% or $8,282.50.

I encourage all of you to join me on this journey through your commentary (comments section is at the bottom of each post) so that we can prosper and share ideas together. It will benefit everyone. I hope to see you in the comments section very soon.