The bullish sentiment is overwhelming at the moment. Two days and roughly 5% higher will do that to an investor with a bullish bias. Naturally, a contrarian finds times like these ideal bearish scenarios over the short-term. Admittedly, I fall into that camp.
The move since the sell-off last Friday has taken the S&P 500 (SPY) from $140.03 to $146.06, for a 4.3% return…thank you fiscal cliff.
Obviously, the push higher has left the S&P 500 in a short-term overbought state. But the major market benchmark isn’t the only short-term overbought ETF in the market. Every major benchmark ETF that I follow in my strategies have pushed into a short-term extreme with the small-cap Russell 2000 ETF (IWM) leading the way.
Tomorrow, I will discuss how I approach this type of set-up with a high-probability strategy in IWM. Stay tuned!!!
If you haven’t, join my Twitter feed or Facebook. Most of all, make sure you sign-up for my Free weekly newsletter,Vertically-Inclined.
If you haven’t emailed me, you can do so at crowderoptions(at)gmail.com. I still have a few spots available.
Thank You Fiscal Cliff……The Race is On!
Can you feel it? No really, can you feel it?
The bullish sentiment is overwhelming at the moment. Two days and roughly 5% higher will do that to an investor with a bullish bias. Naturally, a contrarian finds times like these ideal bearish scenarios over the short-term. Admittedly, I fall into that camp.
The move since the sell-off last Friday has taken the S&P 500 (SPY) from $140.03 to $146.06, for a 4.3% return…thank you fiscal cliff.
Obviously, the push higher has left the S&P 500 in a short-term overbought state. But the major market benchmark isn’t the only short-term overbought ETF in the market. Every major benchmark ETF that I follow in my strategies have pushed into a short-term extreme with the small-cap Russell 2000 ETF (IWM) leading the way.
Tomorrow, I will discuss how I approach this type of set-up with a high-probability strategy in IWM. Stay tuned!!!
If you haven’t, join my Twitter feed or Facebook. Most of all, make sure you sign-up for my Free weekly newsletter,Vertically-Inclined.
If you haven’t emailed me, you can do so at crowderoptions(at)gmail.com. I still have a few spots available.