August 24, 2017

Oversold!

All of the major market indices are officially in an oversold state. We have only witnesses this situation once since the beginning of August, which is a direct result as to why our trading has been nonexistent in the ETF Extremes over that same timeframe. 

Hopefully, if all goes well, we will see a signal in the next day or two. The indicators are lining up, now we need to see some follow through. The best scenario would be if Goldman Sachs comes out tomorrow morning with a report that rubs investors the wrong way. If that occurs we will most likely see a gap lower at the open which would push the indices into an extreme or “very oversold” state. No guarantees of course, but this wil most likely trigger a signal.

If the market opens higher and continues to advance the oversold state will most likely ware off to quickly for a signal to be triggered. We shall see soon enough!

As for our Iron Condor, SPX is currently situated right in the middle of the range we chose roughly three weeks ago. SPX would have to advance/decline 150 points before the position is in jeopardy of taking a loss.

We have decided to add a few more Iron Condor strategies to the newsletter using only European style options. While others have had success trading Iron Condors with ETF’s we like the advantages European style options give us particularly with our specific way of trading Iron Condors.

We will add the additional strategies after the New Year so if you want to reserve a spot for the upcoming Iron Condor strategies a little early email us at support (at) crowderinvestments.com.

Overbought/Oversold for December 14, 2007

S&P (SPY) – 29.7 (oversold)

Russell 2000 (IWM) – 26.4 (oversold)

Dow (DIA) – 29.8 (oversold)

Nasdaq 100 (QQQQ) – 23.9 (oversold)

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