Our Strategies Continue to Outperform - Benchmarks/Sectors Remain in Oversold State

Who said sitting on the sidelines was not a position. Why do traders/investment strategists feel as though they need to be in the market on a daily basis. I firmly believe “the less you trade the better”.

My service often suffers from this belief because I am not constantly trading, but that is fine with me. My goal is long-term gains on short-term trades. I do not want to be exposed to the market on a daily basis and never force trades just for the sake of trading. My performance pretty much says it all.

Anyway, the market once gain made lows today only to gather steam towards the end of the day. The end of the day rally (if you can call it that) didn’t move the short-term indicators much as the major benchmarks and many of the sectors I follow remain in an oversold state.

I am still patiently waiting for a signal to trigger in the ETF Extremes and Sector ETF Extremes strategies, but I am a bit uncomfortable holding a position overnight due to my capitulation concerns. So, if I do establish a position in one or both of the aforementioned strategies it will most likely be an intraday trade.

Again, I would like to invite all of you to participate in my strategies for a 30 day risk-free trial. See what you think. Give it try even if you only want to monitor the service for 30 days. What do you have to lose? Based on our long-term performance you definitely have much more to gain.

Overbought/Oversold Levels for July 7, 2008

ETF Extremes Options Strategy

* S&P 500 (SPY) - 14.6 (very oversold)
* Dow Jones (DIA) - 21.9 (oversold)
* Russell 2000 (IWM) - 8.9 (very oversold)
* NASDAQ 100 (QQQQ) - 33.1 (neutral)

Sector ETF Extremes Options Strategy

* Biotech (IBB) - 47.7 (neutral)
* Consumer Discretionary (XLY) - 19.7 (oversold)
* Health Care (XLV) - 42.9 (neutral)
* Financial (XLF) - 8.0 (very oversold)
* Energy (XLE) - 22.7 (neutral)
* Industrial (XLI) - 27.9 (oversold)
* Materials (XLB) - 19.8 (very oversold)
* Real Estate (IYR) - 14.5 (very oversold)
* Retail (RTH) - 32.5 (neutral)
* Utilities (XLU) - 34.1 (neutral)

If you would like to follow my strategies with real-time alerts or have them autotraded by a participating broker please click the following link: Try our strategies for a 30 day risk-free trial!