June 26, 2017

USO Hits an Oversold Extreme

I just wanted to post the High-Probability, Mean-Reversion indicator without much fanfare tonight.

The slight decline today pushed quite a few of the overbought readings back to a neutral state. USO is the one “very oversold” ETF that I am keeping a close eye. The RSI (2) has pushed to below 1 at 0.84. A very extreme level indeed.

If the ETF opens up lower tomorrow I will most likely be taking a position so subscribers please keep a close eye on the inbox.

Have a wonderful night!

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Short-Term High-Probability, Mean-Reversion Indicator – as of close 2/15/11

Benchmark ETFs

* S&P 500 (SPY) – 69.4 (neutral)
* Dow Jones (DIA) 65.7 (neutral )
*Russell 2000 (IWM) – 68.7 (neutral)
* NASDAQ 100 (QQQQ) – 77.9 (overbought)

Sector ETFs

*Biotech (IBB) – 65.7 (neutral)
* Consumer Discretionary (XLY) – 78.7 (overbought)
* Health Care (XLV) – 61.8 (neutral)
* Financial (XLF) – 72.9 (overbought)
* Energy (XLE) – 78.7 (overbought)
* Gold Miners (GDX) – 70.1 (overbought)
* Industrial (XLI) – 71.1 (overbought)
* Materials (XLB) – 55.3 (neutral)
*Real Estate (IYR) – 67.5 (neutral)
* Retail (RTH) – 60.0 (neutral)
* Semiconductor (SMH) – 67.4 (neutral)
* United States Oil Fund (USO) – 15.1 (very oversold)

* Utilities (XLU) – 44.8 (neutral)

International ETFs

* Brazil (EWZ) – 56.7 (neutral)
* China 25 (FXI) – 39.2 (neutral)
* EAFE (EFA) – 49.0 (neutral)
* South Korea (EWY) – 23.4 (oversold)

Commodity ETFs

* Gold (GLD) – 73.2 (overbought)

Ultra Extremes

* Small Cap Bear 3x (TZA) – 29.4 (oversold)
* Small-Cap Bull 3x (TNA) – 68.6 (neutral)
*UltraLong QQQQ (QLD) – 77.5 (overbought)
* Ultra Long S&P 500 (SSO) – 70.3 (overbought)
* Ultra Short S&P 500 (SDS) – 27.8 (oversold)
* UltraShort 20+ Treasury (TBT) – 41.2 (neutral)

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Kindest,

Andy