The S&P 500 broke through a stingy level of strong overhead resistance today to close at a six year high. The move higher today was a continuation of the intra-day oversold bounce that occurred Friday and seemed to surprise quite a few traders on Wall Street. The problem with this move is that I am not so sure it is sustainable. The S&P seems to have hit a peak in one of our short-term indicators which, in the past, has often led to a short-term pullback over the following week. Given the accuracy of this momentum indicator I have to lean with the probabilities and side with bears on this one. In my opinion, we could be in for a failure of today’s breakout over the short-term.
If you would like to know more about what indicators we use and how we trade them please subscribe to our service. We know many of you come here on a daily basis for trading information and we appreciate the loyalty, but without your financial support, the blog will have to move to a completely subscription-based model. This option is unappealing to all sides, but we know the information we provide to our paid-subscribers is top notch and making the blog subscription-based will only add to the value of our members’ subscriptions.
We work hard to bring you up to date information and some of the best investment strategies around. We offer two auto-trade strategies, both of which are in positive territory and one, ETF Extremes is up 44% on the year, soundly beating the market. Diversifying with both of our strategies that are auto-traded and you would have returns of 23.9%, also well above the returns of the market. Please do not hesitate to call one of the auto-trade services listed on our site to verify the accuracy of our performance and our service. We offer performance statistics on our site, but we understand the importance of taking due diligence a step further. We encourage it! So go ahead, give them a call.
We also offer two other strategies in our semi-monthly newsletter, a Short Iron Condor and a stock-based ETF strategy that is due out after the New Year. At least, give us a try for a month, we know you will find the subscription well worth it.
RSI Wilder (5) for December 5, 2006
- SPY - 69.00 (neutral)
- DIA - 62.5 (neutral)
- IWM - 71.7 (overbought)
- QQQQ - 59.0 (neutral)