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Overbought Names: Stock’s with RSI’s 70 or greater

LO – 87.17

IRM – 78.26

HRB – 75.98

PM – 75.09

DFS – 71.59

GME – 70.97

LUK – 70.75

ARG – 70.69

MSI – 70.56

WFMI – 70.42

MO – 70.11

SJM – 70.11

RAI – 70.02

- These names are now on my radar screen but I will not take action until I get confirmation that there is a good chance of a reversal.  Names can be overbought for a long time so I like to couple the RSI indicator with a MACD indicator.  Once I see a negative line cross on the MACD I will initiate a short position.  I will then wait for the name to take out a swing low on the daily and then short heavily against the recent highs.

Oversold Names: Stock’s with RSI’s 30 or less

URBN – 27.04

NKE – 28.18

CSCO – 28.82

- Same goes for oversold names.  Oversold names can be oversold for a long time just ask anyone who has been trying to buy CSCO over the last month.  I will be looking for the inverse of overbought names.  I want to see a positive MACD cross to initiate the trade.  Once I see the trade start to work and we take out a swing high on the daily chart I will bid a pullback and use the low as a stop.

Again, these names are just on my radar screen and I will be looking for confirmation before entering the trade.  For real time update’s on the possible trades listed above join our live broadcast by clicking on the link below.