August 20, 2017

Market Trade Bound

Tomorrow should provide a the fuel for a decent move tomorrow given the FOMC. I would guess that the short-term trading range that we have entered over the past few trading days should be breached with ease tomorrow given the technical situation.

Trade today: I placed a trade at 9:58 this morning at $3.25 for the Apr10 42 calls. Unfortunately, the price was not filled as we would have had a nice 15%-20% gain on the day which I certainly would have taken off the table. Oh well, there is always tomorrow I suppose. In trading you just can’t look back. Each day brings new opportunities and challenges that need our full attention so looking back is often wasteful.

So, with that being said, I plan on entering a trade once again if the market happens to open lower or test the $44 area again on the NASDAQ 100 (QQQQ). I only plan on being in the trade for 1-2 days and will take a smaller usual gain if indeed the opportunity arises.

As has been the case since the beginning of the year I will be placing the trade for all the world to see on You can go directly to the ETF Extremes strategy page by clicking on the following link:



Overbought-Oversold levels for January 26, 2010

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 24.2 (oversold)
* Dow Jones (DIA) – 21.6 (very oversold)
* Russell 2000 (IWM) – 22.4 (oversold)
* NASDAQ 100 (QQQQ) – 26.6 (oversold)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 31.8 (neutral)
* Consumer Discretionary (XLY) – 30.6 (neutral)
* Health Care (XLV) – 31.5 (neutral)
* Financial (XLF) – 19.4 (very oversold)
* Energy (XLE) – 22.3 (oversold)
* Industrial (XLI) – 27.0 (oversold)
* Materials (XLB) – 21.7 (oversold)
* Real Estate (IYR) – 25.9 (oversold)
* Retail (RTH) – 35.1 (neutral)
* Utilities (XLU) – 35.1 (neutral)

Ultra Extremes

* Ultra Long (SSO) – 23.1 (oversoldl)
* Ultra Short (SDS) – 76.0 (overbought)