June 23, 2017

Post Options Expiration Decline

All of the major benchmarks that we follow in our stock options strategies have moved into a neutral state. The post expiration blues once again came to fruition and now it will be a tug of war over the next few days. My guess is that we will see a push back to the upside over the next day or two, but that is pure speculation. My hope is that we can see a sharp advance as we head into the final five trading days of August which begins on Tuesday the 26th. If we do see a move into overbought or better yet ‘very overbought’ immediately before that time comes I would imagine that we would most likely see a trade in the ETF Extremes options strategy.

As for the Sector ETF Extremes options strategy, well, every sector ETF option we follow is currently in a neutral state. MY hope is to see at least one out of the ten sectors I follow push into an extreme before August calls it quits.

Until then as always I will be waiting patiently on the sidelines for another signal to trigger. Remember, this is a marathon and not a sprint.

Overbought-Oversold levels for August 15, 2008

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 45.2 (neutral)
* Dow Jones (DIA) – 42.7 (neutral)
* Russell 2000 (IWM) – 56.2 (neutral)
* NASDAQ 100 (QQQQ) – 53.9 (neutral)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 49.4 (neutral)
* Consumer Discretionary (XLY) – 55.8 (neutral)
* Health Care (XLV) – 58.2 (neutral)
* Financial (XLF) – 37.1 (neutral)
* Energy (XLE) – 33.6 (neutral)
* Industrial (XLI) – 47.9 (neutral)
* Materials (XLB) – 43.8 (neutral)
* Real Estate (IYR) – 42.0 (neutral)
* Retail (RTH) – 58.4 (neutral)
* Utilities (XLU) – 47.5 (neutral)

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