August 24, 2017

Short-term Pullback in the QQQQ’s

The tech heavy Nasdaq 100 (QQQQ) continued the strong advance today and has now reached an extremely overbought state. Our shortest-term overbought/oversold measures (not mentioned below) are pegged which typically means that the advance should stall and pull back at least over the next day or so. This could be advantageous for our ETF Extremes strategy. It has been quite some time since a signal has been triggered, but if all goes well and the indice does not gap down overnight we could see a signal as early as tomorrow.

Furthermore, I would not be surprised to see a test of the 1500 area in the S&P sometime this week. This looks to be a strong area of support which could bring some bulls back into the game. Watch this area closely over the coming days.

As for our Iron Condor strategy, we made 9.3%  last expiration period and if all goes well we should make around 7.5% during the October this expiration period.

Also, for those of you who have not been able to read the recent newsletter issue, please go to the Insider’s page on the site (paid subscribers only) and check it out. In this issue we have layed out the guidelines for our new SPY Diagonal LEAPS strategy.

Tomorrow we will discuss time premium and the Greeks and how they relate to the new strategy. Also, if you didn’t catch the post yesterday check it out as it has the established postions in the new strategy that we will be following in our test account.

Overbought/Oversold for September 25, 2007

S&P (SPY) – 57.3 (neutral)

Russell 2000 (IWM) – 49.9 (neutral)

Dow (DIA) – 72.1 (overbought)

Nasdaq 100 (QQQQ) – 84.0 (very overbought)

Oil Services (OIH) – 60.2 (neutral)

Newly added ETF’s – We have decided to extend the following overbought/oversold reading on the community blog until next week. We will follow the readings in the Insiders’ page (subscriber’s only) starting 10/1.

Core Sector List

Financials (XLF) – 52.2 (neutral)

Energy (XLE) – 84.2 (very overbought)

Cons. Cyclicals (XLY) – 34.3 (neutral)

Technology (XLK) – 81.7 (very overbought)

Health Care (XLV) – 57.8 (neutral)

Materials (XLB) – 73.2 (overbought)

Industrials (XLI) – 59.1 (neutral)

Cons. Staples (XLP) – 58.4 (neutral)

Telecom (TTH) – 75.0 (overbought)

Utilities (XLU) – 62.5(neutral)

Gold (GLD) – 75.1 (overbought)

International

FTSE/XINHUA China 25 (FXI) – 90.5 (very overbought)

Latin America (ILF) – 80.3(very overbought)

MSCI EMU (EZU) – 73.2 (overbought)

Australia (EWA) – 85.2 (very overbought)

India (INP) – 86.8 (very overbought)

Commodities

Natural Gas (UNG) – 56.0 (neutral)

Agriculture (DBA) – 84.6 (very overbought)

Base Metal (DBB) – 62.7 (neutral)

Energy (DBE) – 53.6 (neutral)

Prec Metal (DBP) – 82.1 (very overbought)

Okay, the plan is to follow a total of at least 25 major ETF’s is complete. Again, in the near future this list will only be available to subscribers to the newsletter/strategies on the Insiders’ page.  

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. We currently follow 3 stock options strategies in our investment newsletter, the ETF Extremes, SPX Short Iron Condor and SPY Diagonal LEAP.

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