August 17, 2017

Retest of Highs Now Weakness Expected

Yesterday I stated “we could see a retest of what has been strong overhead resistance (1555) in the coming days.” The retest came today in the S&P and now I expect to see at least some short-term (1-3 days) weakness follow.

As I mentioned in the post yesterday, “This type of set up could prove advantageous for short-term (1-3 days) bears as we move into post-options expiration. Historically, post expiration is weak, particularly the trading day following options expiration. Furthermore, as I mentioned late last week the market is in the midst of a seasonally weak period. The next four trading days are historically very weak, especially Friday and Monday. According to the Stock Trader’s Almanac July expiration has seen the “Dow lower 4 out of the last 6 years”. More importantly, since 1985 the Almanac goes on to state that since 1985 the Dow and S&P have only finished those days higher 38.1% and 28%, respectively.”

As always, I will keep subscribers to our strategies, particularly the ETF Extremes, abreast of any developments over the coming days.

I would also like to point out that a site by the name of www.pro-option-profits.com, a wonderful site that keeps tabs on all options-based newsletters, follows our strategies and even with the lack of signals recently in the ETF Extremes it still consistently ranks as one of the top options strategies. Consistently is the keyword here. Click on our tab on the left side of the website to see for yourself.

Also, please send me your comments and suggestions on the new site. We are ecstatic about the new site. Success has been our friend and we intend on keeping it that way for a long time.

Overbought/Oversold levels for July 19th, 2007

  • SPY – 72.0 (overbought)
  • IWM – 56.2 (neutral)
  • DIA – 77.2 (overbought)
  • QQQQ – 84.5 (very overbought)
  • GLD – 83.8 (very overbought)
  • OIH – 70.9 (overbought)

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Andrew Crowder, Chief Investment Strategist, www.crowderinvestments.com