August 20, 2017

Market Advances Slightly – Remains in Oversold State

Based on several indicators I follow I decided to hold off on a trade this morning. The bulls had problems pushing the market higher, but were able to at least hold off a bearish push through what seems to be a decent area of support (QQQQ- $44.00 level).

Again, I would prefer to see another push lower or a gap lower at the open before placing another trade in the ETF Extremes strategy. I indeed this occurs tomorrow I would most likely enter into a position. As always stay tuned to the blog and most importantly my new area on Collective2: http://etfextremes.collective2.com/

As for the Sector ETF Extremes strategy, I am still quite  content  sitting on the sidelines until an extreme comes to fruition in one of the underlying ETFs I follow in the strategy.

Furthermore, I am currently looking at some Iron Condor positions due to the 5 week option expiration cycle so stay tuned as I could have some ideas for a trade as soon as tomorrow.

If you have any additional questions or comments please do not hesitate to email me or post a comment on the blog.

Kindest and enjoy the rest of your weekend!

Andy

Overbought-Oversold levels for January 25, 2010

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 26.4 (oversold)
* Dow Jones (DIA) – 21.8 (oversold)
* Russell 2000 (IWM) – 27.2 (oversold)
* NASDAQ 100 (QQQQ) – 25.3 (oversold)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 32.0 (neutral)
* Consumer Discretionary (XLY) – 28.3 (oversold)
* Health Care (XLV) – 35.9 (neutral)
* Financial (XLF) – 24.8 (oversold)
* Energy (XLE) – 25.1 (oversold)
* Industrial (XLI) – 29.4 (oversold)
* Materials (XLB) – 25.9 (oversold)
* Real Estate (IYR) – 29.7 (oversold)
* Retail (RTH) – 23.3 (oversold)
* Utilities (XLU) – 29.2 (oversold)

Ultra Extremes

* Ultra Long (SSO) – 25.1 (oversold)
* Ultra Short (SDS) – 73.6 (overbought)