Mr. Market is at it again.
After a brief correction on 9/25, the S&P has managed to
climb slightly higher, but that hasn't stopped some of the ETFs I
follow from pushing into a short-term overbought state.
Many of the ETFs I follow for the
service have pushed into a short-term "very overbought" so while
the rally in the ETFs mentioned below looks strong, I do expect a
retreat or at minimum a pause over the next week or so.
Some of the most short-term overbought ETFs at the moment
- SPDR S&P Financia ETF (
97.8 (very overbought)
- Direxion Fin. Bull Shares 3x (
97.4 (very overbought)
- SPDR Health Care (
97.1 (very overbought)
- SPDR Consumer Staples (
98.5 (very overbought)
- SPDR S&P 500 (
The aforementioned ETFs are just a few of the highly-liquid,
overbought ETFs I follow in the market. In fact, out of the 40
ETFs that I follow for the Options Advantage service 16 are in an
extreme overbought state.
Typically, when this type of overbought set-up occurs I will
fade the market by selling bear call spreads with a high-probably
If you would like to learn more about the strategies I use in
the Options Advantage service please do not hesitate to email me