Seeking Alpha

Option Milliona...'s  Instablog

Option Millionaires
89 Followers
25 Following
Send Message
Option Millionaires was started in February 2008 to provide traders with information about option trading. Led by three career option traders, whose pseudonyms are JimmyBob, UraniumPintoBeans, and Vantillian, they started one of the most popular option trading communities on the web. Now, Option... More
My company:
Option Millionaires
My blog:
Daily Read
  • Monday Morning Outlook – Bullish Candles, New Support Levels, Potential Bottom Targets (Video) 0 comments
    Nov 18, 2012 9:05 PM | about stocks: DIA, SPY, IWM, IVV

    By Christopher Diodato

    • August 8, 2011
    • May 17, 2012
    • November 15, 2012

    What's in common with these dates? These are all of the dates during the past two years that the market has reached the formal definition of "oversold" as explained by J. Welles Wilder. That is, the market has crossed below the "30″ level on the Relative Strength Index. In the past four years, shortly after the market reaches this point, the market had made a lower, panic low, then reversed back up. Especially with the bullish hammer formation we saw on Friday, I believe that a market bottom may be in the near future. The hammer occurred on very high volume especially in inflationary issues, such as energy stocks. Therefore, I would not be surprised if energy stocks emerged as a market leader in the next rally.

    (click to enlarge)

    Check out the video here for the RSI and candlestick analysis. Also included (in the above picture too) are the new support levels for the Dow Jones Industrial Average.

    Happy trading!

    ~Chris Diodato

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: oversold, rsi, fibonacci support, retracements, candlesticks Stocks: DIA, SPY, IWM, IVV
Back To Option Millionaires' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Full index of posts »
Latest Followers

StockTalks

  • Relative strength analysis makes the $QQQ and semis $SMH look strongest http://seekingalpha.com/a/v1bx
    1 day ago
  • $DOW breaking out of an 18 month base. Historcally, these breakouts are followed by sharp upswings. http://bit.ly/13Rup4S
    May 12, 2013
  • $AAPL For the past 6 months during the decline, everyone was bullish. Now, suddenly every article here says don't buy. Don't follow crowds!
    May 6, 2013
More »

Latest Comments


Most Commented
Posts by Themes
ABC correction, august 2011, bases, bollinger band, breakout trading, calls, candlestick, candlesticks, Casino, china, cmt, commodities, consolidation, constance brown, crude oil, cup and handle, currency devaluation, Demark, Divergence, divergence, dollar weakness, Earnings, earnings, economy, Elliott wave, Elliott Wave, Elliott wave analysis, elliott wave market, elliott wave S P 500, energy, energy outperformers, energy stocks, Fibonacci, fibonacci support, Flag, forex, Gann, gas futures, gas prices, gasoline prices, Genworth, global investing, gold, gold in euros, gold miners, hated stocks, head and shoulders, heavily shorted stocks, high volume decline, holiday effect,
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.