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.

2008-03-20-prophet.png

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.

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