July 28, 2017

Potential Signal Ahead?

I am going to keep it rather short tonight.

All of the major benchmarks have moved close to a  short-term overbought state after the nice rally today. The market moved higher at the open today and never looked back as the day progressed. The Fed announcement was just icing on the cake.

Now the S&P has moved close to the highs from last week. This area should act as a decent area of overhead resistance while the 900, 880 and most notable, the 850 area should act as potential areas of support.

I would also like to point out that a few of the sector ETFs that I follow have officially moved into a hort-term overbought state. That being said there is a very good chance to see our first trade in a few months in the Sector ETF Extremes strategy over the next few trading sessions. Subscribers stay tuned!

One last note is that we closed near the highs of the day today so we also have the potential to witness a Gap Fade trade tomorrow. Could we see the trifecta tomorrow? It sure would be nice, especially if they were all profitable signals. Subscribers, as always I will send out a real-time trade alert if and when a trade occurs. Again, stay tuned.

Have a great night!


Overbought-Oversold levels for December 16, 2008

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 65.9 (neutral)
* Dow Jones (DIA) – 67.5 (neutral)
* Russell 2000 (IWM) – 68.9 (neutral)
* NASDAQ 100 (QQQQ) – 66.7 (neutral)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 68.0 (neutral)
* Consumer Discretionary (XLY) – 68.3 (neutral)
* Health Care (XLV) – 77.6 (overbought)
* Financial (XLF) – 59.9 (neutral)
* Energy (XLE) – 56.2 (neutral)
* Industrial (XLI) – 66.0 (neutral)
* Materials (XLB) – 71.9 (overbought)
* Real Estate (IYR) – 63.7 (neutral)
* Retail (RTH) – 64.2 (neutral)
* Utilities (XLU) – 58.9 (neutral)

Ultra Extremes (Insiders Page Only)

* Ultra Long (SSO) – 65.1 (neutral)
* Ultra Short (SDS) – 31.5 (neutral)

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