July 28, 2017

More of the same – Options Strategies Patiently Wait for a Signal

Not much to say today as all of the major benchmarks and sectors I follow for my options trading strategies remain in a neutral state. My hope is that we see another sharp decline over the next two days that pushes the ETFs I follow back in an oversold state. If this occurs before the seasonal bullishness that historically occurs the day before Labor Day then we might see a signal in both of the Extreme Options Strategies. Might I add that I would not mind a gap lower over the next few days as well. It has been a while since the market has witnessed a gap lower, (or higher for that matter) and the Gap Fade Options Strategy would love an opportunity to take a position. If only Mr. Market would cooperate.

Anyway, here are a few quality charts by my favorite chartist, Tim Knight. Enjoy!

As always, have a wonderful evening,


Overbought-Oversold levels for August 26, 2008

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 43.5 (neutral)
* Dow Jones (DIA) – 43.6 (neutral)
* Russell 2000 (IWM) – 39.1 (neutral)
* NASDAQ 100 (QQQQ) – 34.5 (neutral)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 35.2 (neutral)
* Consumer Discretionary (XLY) – 47.2 (neutral)
* Health Care (XLV) – 38.7 (neutral)
* Financial (XLF) – 42.7 (neutral)
* Energy (XLE) – 60.9 (neutral)
* Industrial (XLI) – 42.5 (neutral)
* Materials (XLB) – 41.9 (neutral)
* Real Estate (IYR) – 41.9 (neutral)
* Retail (RTH) – 52.8 (neutral)
* Utilities (XLU) – 52.1 (neutral)

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