August 17, 2017

Will Our Expectations Come to Fruition?

We all were witness the so-called Summer's Gap that occurred at the open this morning. Unfortunately, for the bulls, the short-term very overbought state was too much. All of the major indices sold off near the close. But wait, not all is lost. The Overbought/Oversold indicator indicates that we still have quite a few short-term extremes left in the market. The most notable are GLD and SDS on the oversold side of things. DIA and XLP reside in opposite territory as they are both firmly entrenched in a very overbought state. I put on a few trades today for my subscribers with one of the aforementioned ETFs included in the mix. It was just too good of a spot to ignore a trade...a gap higher into a short-term overbought state while … [Read more...]

Short-Term High-Probability, Mean-Reversion Indicator – Gold, Oil and Natural Gas Hit Extremes

The stock market opened the day lower and toiled around negative territory in the early part of the trading session, but bounced hard during mid-day to finish in positive territory. As a result, gold (GLD, gold miners (GDX), oil (USO) and natural gas (UNG) pushed into a short-term extreme. Natural Gas is the one to watch here. Given that the High-Probability, Mean-Reversion Indicator has pushed into a short-term extreme and that the RSI (2) has moved above 99, it is highly plausible that a short-term reprieve is near (1-3 days). Subscribers stay tuned. … [Read more...]