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Andrew Crowder
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Over the last few years I have worked diligently towards refining several of my favorite and most successful stock options strategies. My hard work and diligence have proven to be a success and now I want to share my ideas and strategies with a limited group of like-minded investors. My options... More
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  • Short-Term High-Probability, Mean-Reversion Indicator. A Few Oversold ETFs, But No Extremes. 0 comments
    Nov 23, 2010 7:26 PM | about stocks: DIA, EEM, EFA, EWY, EWZ, FXI, GDX, GLD, IBB, IWM, IYR, OIH, QLD, QQQ, RTH, SDS, SMH, SPY, SSO, TBT, TNA, TZA, USO, VXX, XLB, XLE, XLF, XLI, XLU, XLV, XLY
    More uncertainty entered the market today. North and South Korea conflict, more allegations of insider trading and continued concerns plagued the market today and one has to wonder if this market can gain any ground as we move closer and closer to the 2011. Fortunately, I do not concern myself with these types of issues in my trading. The so-called noise does not concern me as much as when the ETFs I follow hit a short-term oversold/overbought extreme.

    The High-Probability, Mean-Reversion Indicator was once again successful in pointing out the short-term direction in overbought Retail sector (NYSEARCA:RTH) as well as the Semiconductors (NYSEARCA:SMH). After today's market-wide drubbing, several of the ETFs that I follow have moved into a short-term oversold state, but none of them have yet to display an extreme reading.

    The next two trading days are seasonally bullish. Yes, the day before and after Turkey Day are quite bullish, but the two days after that are overwhelmingly bearish.

    It is my hope that the market is able to defy the historically seasonal bullishness and move lower tomorrow to push a few of the ETFs I follow into a short-term oversold extreme. If this plays out and I see a few of the ETFs move into an oversold extreme I will be sending out a trade alert to all of my loyal subscribers.

    I just wanted to thank all of you for the continued kind words. It seems as though the High-Probability, Mean-Reversion strategy has been a success so far and many of you have been able to take advantage of the indicators that I publish daily. I hope

    If you haven’t already, don’t forget to sign-up for my Free 30-day trial. Also, for those of you who live on Facebook. You can access my info there as well. Just click on LIKE.

    Short-Term High-Probability, Mean-Reversion Indicator – as of close 11/22/10

    Benchmark ETFs

    * S&P 500 (NYSEARCA:SPY) – 32.3 (neutral)
    * Dow Jones (NYSEARCA:DIA) –28.9 (oversold)
    * Russell 2000 (NYSEARCA:IWM) – 49.1 (neutral)
    * NASDAQ 100 (QQQQ) – 40.5 (neutral)

    Sector ETFs

    * Biotech (NASDAQ:IBB) – 46.4 (neutral)
    * Consumer Discretionary (NYSEARCA:XLY) – 43.2 (neutral)
    * Health Care (NYSEARCA:XLV) – 30.2 (neutral)
    * Financial (NYSEARCA:XLF) – 24.1 (oversold)
    * Energy (NYSEARCA:XLE) – 42.6 (neutral)
    * Gold Miners (NYSEARCA:GDX) – 53.9 (neutral)
    * Industrial (NYSEARCA:XLI) – 37.4 (neutral)
    * Materials (NYSEARCA:XLB) – 38.2 (neutral)
    * Real Estate (NYSEARCA:IYR) – 35.8 (neutral)
    * Retail (RTH) – 51.8 (neutral)
    * Semiconductor (SMH) – 65.9 (neutral)
    * United States Oil Fund (NYSEARCA:USO) – 31.1 (neutral)
    * Utilities (NYSEARCA:XLU) – 25.7 (oversold)

    International ETFs

    * Brazil (NYSEARCA:EWZ) – 25.8 (oversold)
    * China 25 (NYSEARCA:FXI) – 22.8 (oversold)
    * EAFE (NYSEARCA:EFA) – 25.3 (oversold)
    * South Korea (NYSEARCA:EWY) – 27.6 (oversold)

    Commodity ETFs

    * Gold (NYSEARCA:GLD) – 62.3 (neutral)

    Ultra Extremes

    * Small Cap Bear 3x (NYSEARCA:TZA) – 48.9 (neutral)
    * Small-Cap Bull 3x (NYSEARCA:TNA) – 48.3 (neutral)
    * UltraLong QQQQ (NYSEARCA:QLD) – 40.6 (neutral)
    * Ultra Long S&P 500 (NYSEARCA:SSO) – 32.0 (neutral)
    * Ultra Short S&P 500 (NYSEARCA:SDS) – 66.9 (neutral)
    * UltraShort 20+ Treasury (NYSEARCA:TBT) – 35.6 (neutral)

    I work hard to bring you my latest views, opinions and research on a daily basis. If you are a loyal reader and find my thoughts useful please show your support by joining my newsletter service. For the first time, I am offering a 30-Day Free Trial.

    Watch and learn firsthand how I implement my options strategies.



    Disclosure: Short SPY.
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