August 17, 2017

Short-Term, High-Probability Mean-Reversion – Several ETFs Hit Short-Term Extremes

Several of the ETFs I follow in the High-Probability, Mean Reversion strategy have hit a short-term “very overbought” extreme. Typically, when this type of event occurs a short-term reprieve (1-3 days) is right around the corner.

Unemployment numbers are out before the bell tomorrow so I expect to see a pop at the open. If the market opens higher tomorrow I expect to make a trade in the strategy, so subscribers stay tuned.

I currently have a trade on, so of course a move lower at the open would not upset me either. I expect tomorrow will be a very interesting day.

Have a great night!

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Short-Term High-Probability, Mean-Reversion Indicator – as of close 3/31/11