Site Revision
I am working on revising the website so their will not be a post tonight and potentially for the rest of the week. I apologize for the inconvenience, but I think subscribers to the site will appreciate the upcoming changes.
May 5, 2008
May 2, 2008
Another Gap Fade Success - Up 7.8% Since Inception Two Months Ago
The Gap Fade Strategy had another successful signal today. The QQQQ trade reaped a respectable 6.4% for the day. The strategy is now up 7.8% since its inception just a few months ago. I would have liked to take more off the table today, but this strategy shoots for singles and doubles with the occasional home run. We still have room in the strategy if you wish to join.
Three straight weeks of gains and now directly under strong overhead resistance at the 1425 level on the S&P. Furthermore, the recent push higher has landed much of the back market in a short-term overbought state. I think we could see a short-term decline going forward. The prior statement could foreshadow my intentions for early next week in the ETF Extremes strategy. If there is a signal it could be a nice one given the extreme overbought levels of the current market. The ETF Extremes strategy also has room left.
I will be back later this weekend with a more thorough post on the current technical and sentiment extremes that have entered the market. Stay tuned!
May 2, 2008 - Crowder’s Overbought/Oversold Readings
Major Benchmarks
- Dow (DIA) - 84.4 (very overbought)
- S&P (SPY) - 77.2 (overbought)
- Russell 2000 (IWM) - 64.8 (neutral)
- Nasdaq 100 (QQQQ) - 80.4 (very overbought)
- Emerging Markets (EEM) - 71.7 (overbought)
Sectors
- Biotech (IBB) - 64.9 (neutral)
- Consumer Discretionary (XLY) - 72.1 (overbought)
- Health Care (XLV) - 65.7 (neutral)
- Financial (XLF) - 77.4 (overbought)
- Energy (XLE) - 48.3 (neutral)
- Industrial (XLI) - 72.2 (overbought)
- Materials (XLB) - 42.5 (neutral)
- Real Estate (IYR) - 61.0 (neutral)
- Retail (RTH) - 60.7 (neutral)
- Utilities (XLU) - 75.7 (overbought)
International
- Brazil (EWZ) - 74.8 (overbought)
- China (FXI) - 82.8 (very overbought)
Others of Interest
- Clean Energy (PBW) - 44.0 (neutral)
- Water (PHO) - 77.2 (overbought)
- Agriculture (DBA) - 38.4 (neutral)
- Commodity Index (DBC) - 47.3 (neutral)
- Oil Services (OIH) - 48.3 (neutral)
May 1, 2008
Overbought As Important Economic Data Nears
The market surged today and has pushed the market stalwarts that make up the Dow and S&P into an “overbought” to “very overbought” state. Typically this type of reading means that a short-term reprieve is near. My hope is that the payroll report that is due out tomorrow pleases Wall Street and pushes the futures higher at the open. This will most likely cause a gap and would push the Dow into a short-term extreme. The RSI Wilder (2) for the Dow (DIA) is currently 92 which is slightly below a short-term extreme.
I really do not have much to say at this junctue. Tomorrow cuold present some interesting opportunities for our strategies. As always I will let you (subscribers) know if and when a trade is placed.
Have a great night!
May 1, 2008 - Crowder’s Overbought/Oversold Readings
Major Benchmarks
- Dow (DIA) - 80.2 (very overbought)
- S&P (SPY) - 75.2 (overbought)
- Russell 2000 (IWM) - 69.3 (neutral)
- Nasdaq 100 (QQQQ) - 60.7 (neutral)
- Emerging Markets (EEM) - 79.8 (overbought)
Sectors
- Biotech (IBB) - 68.4 (neutral)
- Consumer Discretionary (XLY) - 74.7 (overbought)
- Health Care (XLV) - 65.4 (neutral)
- Financial (XLF) - 75.0 (overbought)
- Energy (XLE) - 31.3 (neutral)
- Industrial (XLI) - 69.1 (neutral)
- Materials (XLB) - 31.4 (neutral)
- Real Estate (IYR) - 59.8 (neutral)
- Retail (RTH) - 68.4 (neutral)
- Utilities (XLU) - 60.5 (neutral)
International
- Brazil (EWZ) - 70.4 (overbought)
- China (FXI) - 80.2 (very overbought)
Others of Interest
- Clean Energy (PBW) - 37.9 (neutral)
- Water (PHO) - 78.1 (overbought)
- Agriculture (DBA) - 26.1 (oversold)
- Commodity Index (DBC) - 21.6 (oversold)
- Oil Services (OIH) - 30.9 (neutral)
