Monday, September 01, 2014


Hhhhhhmmmm, why do I have the Q's up there instead of the SPY? Hold on a minute, hahahaha, I remember, that's a senior moment there, one of my favorite people, Andy Crowder, run's an Iron Condor stock service, and he gives webinar's every so often where he lays out his strategy, he gave one this week, basically he only trades the most liquid ETF's and AAPL, he uses the three RSI's above in his selection criteria, a 14, 5 and 2 settings where he wants all three to be over sold or over bought before he will start legging into the call side or the put side, and this week he mentioned the Q's above as a trade idea, as it's obviously over bought on all three time frames, I have a 13 RSI rather than the 14, but that's just me as I like to use FIB numbers. Andy uses other criteria other than the RSI, but that's the main one he always talks about.
I bring this up because his trade is to put on the Call side Condor, short 103 October calls and long 105 calls, which is fine, each to his own, but I would point out that just because the Q's are over bought on all three RSI's doesn't mean it can't go up even MORE! What happened prior to the last pull back was we got divergences as the RSI's made lower highs while the Q's went on to make a higher high before it pulled back. Just trying to short it because it's over bought doesn't mean it has to pull back, I mean, you might miss the move if you wait for divergences to show up but your odds of success may also increase.
Just my personal opinion of course, Andy knows a lot more about it than I do.

Speaking of divergences we are getting another one on the $NYMO, we had a couple of them ahead of the last pull back, so the $NYMO "may" be saying some thing, but more than likely the markets just continue to defy the odds and grind higher. I would mention that the main men, the $NYAD's and $NYSI, are in fine shape and showing no problems.

The $NYNL is also diverging, as they are WAY lower than the highs made in early June.

Brazil blew up this week for some reason, leading my 73 markets in my Market Monitor, up 6.53% on the week. Our best "X", or SECTOR, this week, was the XLF, up 3.45%, followed by XLU, XLV and XLY, our best MAJOR market was bonds, TLT up 1.5%, then IWM, 1.17%, RSP .85%, SPY .76%, QQQ .74%, with the Big Dogs bringing up the rear, DIA up .59%.

There were 20 out of 73 markets down this week, a big improvement over last week, most of them were those Udder Worldly things like RSX, EWH, FXI, but WAAAAAYYYYYY down at the bottom is the best performing sector in our markets this year, IYT down a MASSIVE .19% this week, very shocking I would say. Ya know, every devastating bear market begins with the smallest step. 

One thing that didn't improve this week was the number of markets with a Death Cross, 20sma below 50sma, it stayed the same as last week at 45 markets, they were RSX,RSP,IDX,EIS,EIDO,EPHE,THD,SH,QID,IDX,FXI,OIH,BND,GDX,VWO,VXX,XIV,UNG,DBA,DBC,ECH,EEM,EGPT,EIRL,EPI,EPU,ERY,EWA,EWC,EWD,EWG,EWH,EWI,EWJ,EWK,EWL,EWM,EWN,EWO,EWP,EWQ,EWS,EWT,EWU,EWZ,EWY,EWW,EZA,IYR,IYT,JNK,TUR,IWM,SPY,QQQ,DIA,JNK,USO,TLT,FXE,FXF,SMH,VOO,GLD,SLV,VGK,XLV,XLY,XLF,XLB,XLE,XLI,XLP,XLK,XLU. Just because they have a death cross in the MA's doesn't mean they aren't going UP, as a lot of those are actually ABOVE the 20sma in price. 

These are the big winner's in the SP 500 this week.

And these are the big loser's, I'm surprised to see GRMN leading the charge lower, if you listen to the talking heads that company is the greatest thing going........... or so I hear!
I swear, SWEAR I TELL YA, that CLF will not, I repeat, NOT, be on this loser's list................ one of these years!


Don't Get Ruined by These 10 Popular Investment Myths (Part II)
Interest rates, oil prices, earnings, GDP, wars, terrorist attacks, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market
By Elliott Wave International
You may remember that during the 2008-2009 financial crisis, many called into question traditional economic models. Why did the traditional financial models fail? And more importantly, will they warn us of a new approaching doomsday, should there be one? That's a crucial question to your financial well-being. This series gives you a well-researched answer. Read more.


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