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 emailed me, you can do so at crowderoptions(at)gmail.com. I still have a few spots available.