It was an eventful week inside Exodus, with several developments and a year to date update. Late last week EDZ had flagged oversold and I took a fairly large position, equating to 20% of my assets. I booked a 7%+ gain earlier in the week.
On Friday, the market ripped higher. Amongst other sectors, the Pacific Banks look stretched. This is a chart of the Exodus oscillator that depicts overbought and oversold ranges. Clearly, we’ve closed at the high end.
For the week, oil and gas were the biggest losers.
Once again, silver and gold outperformed.
On the oversold side are the utilities. They sold off late last week and are now saddled at the low end of the recent range. Although I believe the sector is way overvalued, based on fundamentals, technical traders might want to take a look at the utes this week for a bounce.
Lastly, here is my YTD update. Bear in mind, I am no longer trading on gut instincts, or reacting to the market based on news events or breakouts, or playing earnings. For the entirety of 2016, I’ve decided to rely solely upon the Exodus algorithms for trades, coupled with some core thesis positions based upon what I believe to be the best ways to invest in this economic environment. Year to date, my gains stand at 4.04%
For the week ahead, I am expecting the market to continue its march higher, into new all-time highs–but then trade off mid to late in the week after investors wake up to the obvious facts that they’ve been made a fool chasing an overvalued tape into a harrowing news cycle.
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Dear Mr. Fly,
I must say as a former antagonist you’ve matured impressively over the last decade. Exodus is also an impressive tool offering real value. Much respect and props to you Sir.
JCB
@quagmires
Thank you former antagonist.