June 23, 2017

Short-Term Reprieve Occurs – Now What?

In my Free Weekly Report this past weekend I spoke about how I thought a short-term reprieve was lurking. I spoke about a return to 1220 and well, we are here already.

Now what?

The market gapped significantly lower at the open and never looked back. Now all of the ETFs I follow for the options strategies are well within a neutral state. The only ETF that has pushed into a short-term oversold state – TBT. And if the RSI (2) of TBT moves even lower tomorrow I will most likely take another position. Other than that I will be sitting on the sidelines waiting for the next set-up.

According to Jason Goepfert:

“The Beta Chase Index jumped above 6 on Monday, very unusual for a down day in the market.

Part of the reason was that those traders continued to move into the Nasdaq 100 (NDX) fund, pushing the Bull/Bear Ratio there to the highest ever (dating back to 2000).  There is now 50 times more money invested in the long NDX fund than the inverse NDX fund.  That is not encouraging.”

As for our Theta Driver position, we are well below the 130 strike and the trade looks to be another good one going forward. I will be placing another trade, this time for the December cycle over the next 1-5 days. Subscribers stay tuned!

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