Will the market experience the seasonally bullish that typically
occurs on the trading day prior to the Labor Day holiday? The market
has already witnessed three straight days of advances and some of my
shorter-term proprietary overbought-oversold indicators have pushed
near extremes, so probability says a short-term reprieve is near.
However, it must be noted that over 76% of the trading days prior to
the Labor Day holiday weekend have been higher with an average return
of over 0.4% since 1950.
One other note of interest is the fact that when the S&P 500
(SPY) has advanced two days prior to a 0.5% gap higher (like it did
today), the S&P, when in a bear market, was higher approximately
23% of the time the following day.
I will be back with a seasonal take on September tomorrow. Stay tuned!
As for my options strategies, the Sector ETF Extremes Options Trading Strategy is
very close to a signal. We could see one as early as tomorrow so
subscribers, as always, I will send out a real-time trade alert if and
when a trade occurs. For those of you who autotrade, well, you have no
worries. Hopefully you can just enjoy the gains, that is of course if
all goes as well as planned.
Interested in how our flagship strategy, the ETF Extremes Options Strategy, has performed since it was initiated well over 2 years ago (with commissions and our monthly fees included) click here:
http://www.crowderoptions.com/another-successful-etf-extremes-trade-sample-allocation-important-please-read/
Overbought-Oversold levels for August 28, 2008
ETF Extremes Options Trading Strategy
* S&P 500 (SPY) - 65.6 (neutral)
* Dow Jones (DIA) - 67.8 (neutral)
* Russell 2000 (IWM) - 66.1 (neutral)
* NASDAQ 100 (QQQQ) - 54.8 (neutral)
Sector ETF Extremes Options Strategy
* Biotech (IBB) - 45.6 (neutral)
* Consumer Discretionary (XLY) - 64.2 (neutral)
* Health Care (XLV) - 51.5 (neutral)
* Financial (XLF) - 66.1 (neutral)
* Energy (XLE) - 54.7 (neutral)
* Industrial (XLI) - 67.9 (neutral)
* Materials (XLB) - 68.0 (neutral)
* Real Estate (IYR) - 67.8 (neutral)
* Retail (RTH) - 65.4 (neutral)
* Utilities (XLU) - 74.0 (overbought)
If
you would like to follow my strategies with real-time alerts or have
them auto-traded by a participating broker please click the following
link! Try our strategies for a 30 day risk-free trial!