August 24, 2017

Real Estate (IYR) and Retail (RTH)

Daily Random Thoughts

Okay let me get this out of the way: Go Ducks!!!!

“March Madness” has officially begun and best of all, it falls on a nice long weekend. Here is an interesting article that I post every year around this time:  Using Basketball to Understand Options

Market Comments

What a week! Up 400, down 300, up 250. Volatility often increases during a bottoming process, so are we indeed witnessing a change in the intermediate-term sentiment? Of  course, as we all know there are no certainties when discussing Mr. Market, but I have seen this set-up many times in the past and it often leads to a reprieve or bounce. However, the market remains below the upper-band of the trading range (see chart below) that began carving itself out in mid-to-late January.

Over the short-term, both Real Estate (IYR) and Retail (RTH) have moved into an overbought state with some fairly strong overhead resistance directly above. This has typically led to a short-term reprieve going forward, but I am not quite ready to commit. I will be watching these two closely early next week and if a trade is warranted in the PaperTrade Extremes I will notify subscribers on the Insiders page.


Overbought/Oversold for March 20, 2008

Major Benchmarks

  • Dow (DIA)- 58.5 (neutral)
  • S&P (SPY) – 53.6 (neutral)
  • Russell 2000 (IWM) – 54.2 (neutral)
  • Nasdaq 100 (QQQQ) – 56.4 (neutral)
  • Emerging Markets (EEM) – 40.3 (neutral)

more overbought/oversold levels on additional sectors found in the Insider’s page (Buy the White Paper and receive Two Months of the Insiders Page Free) – less than $1 a day.

We work hard to bring you our latest views, opinions and research on a daily basis. If you are a loyal reader and find our thoughts useful please show us your support by joining our newsletter service. 

Check out our Gap Fade strategy and ETF Extremes strategy! Learn the simplicity of four powerful options strategies in our newsletter including SPX and RUT Iron Condors.

acclaimed E-Book! With your purchase you will receive Two Free Months of our investment newsletter plus unlimited access to our Insider’s page enabling you to follow our strategies as you learn. What do you have to lose? Join today!