July 21, 2017

Post Options Expiration Blues Strikes Again, NEW ETF Advantage

The trading day following options expiration is typically bearish and today was no different. The decline brought the Nasdaq 100, QQQQ, into oversold territory for the first time in a month. Typically we see at east a short-term bounce off of the oversold levels although I think the market could move a bit lower, possibly into a very oversold state intraday before we get a short-term move to the upside.

Our Short Iron Condor was successful for the second straight expiration month and we were able to establish another position today (as seen in our newsletter). Due to the overwhelming response we are considering offering this strategy as a service much like the Gap Fade and ETF Extremes.

Furthermore, we began our stock-based ETF Advantage strategy which will be offered our newsletter subscribers. This is a bit different then our typical options-based portfolios and we are excited about the potential of the strategy. Our screens left us with 25 ETF’s that we will follow based on Vaughn Okumura’s, with a Crowder Twist of course, overbought/oversold measures. Mr Okumura kept a record and his now defunct site (not sure why it is gone), and his gains from 2/21/97 through 2/03/06 were in excess of 384%. He achieved these remarkable gains by only trading the underlying QQQQ. We hope our ETF Advantage strategy will exceed his results. Join us to watch and learn!

Superbowl Indicator.

Oversold/Overbought levels for January 22, 2007

  • SPY – 43.7 (neutral)
  • DIA – 37.0 (neutral)
  • IWM – 36.2 (neutral)
  • QQQQ – 28.8 (oversold)
  • OIH – 61.1 (neutral)
  • GLD – 63.1 (neutral)

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Have a great night!