August 17, 2017

Patience Continues to Pay While Greed Continues to Kill

As much as my  gut feels that the market will experience a near-term rally I am glad I haven’t acted on it in our options strategies. I have been patiently waiting on the sidelines (as I always do) for the my signals to trigger a warranted trade and so far this has worked over the short, intermediate and long-term, particularly in the ETF Extremes strategy.

Just by sitting on the sidelines I continue to outperform the market by a substantial margin. The important thing to point out that I did not come to this conclusion recently. The strategies did not blow up in the face of the bear market. Actually, the ETF Extremes has gained considerable ground over the past year (and since its inception three years ago for that matter).

Greed kills. How many advisory and newsletter services tout gains over the short-term only to blow up and lose it all when faced with adverse conditions. Too many. I will continue to stock to my guidelines that have kept me profitable in this market whether the market is up, down or sideways.

Some people scoff at the strategies. You should be selling options. You should do this or do that. Believe me, these are the same people that continue to lose subscribers/clients and are on the never-ending treadmill of trading/investing.

All I know is that I have found a strategy that works (ETF Extremes) for me and more importantly I am extremely comfortable with how it trades. I am realistic. Yes, anyone can make 100% or even 1000% on an option trade, but the question is can they sustain the gains.In most cases, no. This is why trading/investing is so incredibly difficult. Inherently, we are impatient, we want to see results now. If you are sitting on the sidelines in cash you feel that the strategy is being left to the wayside. Just look at my trades and how infrequent they are in the ETF Extremes strategy and then look at the final results. You tell me what works and more importantly what works in any market environment. I can proudly stand and state that the strategies have withstood the market collapse and in the case of the ETF Extremes they have actually made substantial progress. Hopefully our good fortune will continue.

Have a great night!


Overbought-Oversold levels for November 20, 2008

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 19.4 (very oversold)
* Dow Jones (DIA) – 23.1 (oversold)
* Russell 2000 (IWM) – 15.6 (very oversold)
* NASDAQ 100 (QQQQ) – 12.0 (very oversold)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 19.9 (very oversold)
* Consumer Discretionary (XLY) – 16.6 (very oversold)
* Health Care (XLV) – 21.4 (oversold)
* Financial (XLF) – 12.3 (very oversold)
* Energy (XLE) – 23.8 (oversold)
* Industrial (XLI) – 17.5 (very oversold)
* Materials (XLB) – 18.7 (very oversold)
* Real Estate (IYR) – 16.3 (very oversold)
* Retail (RTH) – 20.9 (oversold)
* Utilities (XLU) – 24.1 (oversold)

Ultra Extremes (Insiders Page Only)

* Ultra Long (SSO) – 17.3 (oversold)
* Ultra Short (SDS) – 81.8 (very overbought)

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