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Extremely Overbought

Published 10/08/2015, 01:48 AM
Updated 07/09/2023, 06:31 AM
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“Sometimes your best investments are the ones you don’t make.” Donald Trump

Well, what an amazing weekend it was and the last hurray of summer I suppose.

Unfortunately, it was rather chilly and now I’m sick as a dog.

I’d hoped to have a report out Tuesday evening but couldn’t even muster the strength to roll off the couch and I do apologize for that.

That said, we are still seeing lots of chop and very tricky markets.

We are seeing overbought levels right now and they desperately need to be worked off.

We have not been this overbought in recent memory!

There are a lot of V bottoms in the charts out there tonight so perhaps after a couple or few days of rest they can breakout higher but only time will tell.

Earnings season does begin in a couple weeks so we are getting very near some better action one way or another.

Earnings unofficially begin on the 18th with Alcoa Inc (NYSE:AA).

SPY Daily Chart

SPDR S&P 500 (NYSE:SPY) has a small rising channel which tends to lead to lower prices, especially when we are so overbought.

Unless we can really move above the 200 level on strong volume then chances are we do head lower.

We’re overbought from the strong run the last few days and rallies in downtrends tend to be very strong and sharp and that is so far what I see it as but that can change.

We are getting closer and closer to some trades finally but I’m still not ready.

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