August 17, 2017

Most of the sectors back to a neutral state

Yesterday several of the ETFs that we follow on the Insiders page moved into a “overbought” to “very overbought” state. Today, most of them sold off, inclusing some of the major market benchmarks DIA and SPY. I also mentioned EEM as a potential move lowr over the short-term and that came to fruition today. However, Brazil (EWZ) continues to defy its extreme overbought status. It has yet pullback in the face of its extreme overbought status and an RSI(2) that pierced 99. It move slightly lower today, a whopping $0.06. Could this be the top?

The other ETF that has moved back into an overbought state (but not extreme yet) is the XLE (Energy).

As I stated above I will be watching XLE and EWZ closely tomorrow to see if the overbought conditions fade lower.

We could also see a gap fade opportunity tomorrow as the futures for the Nasdaq 100 are lower. So far the strategy has 2 out of 2 winning trades since its inception a few week ago. Subscribers’: I will keep you informed of my plans on the Insiders page tomorrow morning.

Overbought/Oversold for February 28, 2008

Major Benchmarks

  • Dow (DIA) – 59.5 (neutral)   
  • S&P (SPY) – 52.5 (neutral)
  • Russell 2000 (IWM) – 46.3 (neutral)
  • Nasdaq 100 (QQQQ) – 55.5 (neutral) 

more overbought/oversold levels on additional sectors found in the Insider’s page

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