"On Wall Street the Dow Jones Average was further oversold for the sixteenth month in a row and now stands at 8"
DJIA closing down 25.61 (0.23%), S&P down 3.12 (0.27%) in abbreviated trade.
From Slope of Hope:
The market has pushed into one of the most short-term oversold states that I have seen in quite some time. Almost every ETF I follow is now in a “very oversold” state with RSI (2) readings below 5 and over half below 1 – a rarity indeed.It is during times like these that wealth is truly built.
So, now is the time that I want to be aggressive on the long side, but only for a few trading days. Conditions like the aforementioned almost always work themselves back to mean-reversion and I want to be a participant when the short-term occurs. I already have several trades on in both of my options strategies and plan on adding several more over the next few trading days, that is unless we see an enormous bounce before the opening bell Friday, which I think is highly doubtful.
I think Tom Sosnoff says it best - ”The trend is your friend but the fade is the ultimate wealth builder”...MORE
Earlier this week:
Equities: "Back to Oversold" (DIA; SPY; XLF)
