These oversold signals are rare these days. Some of you might remember a time when Exodus would flag OS for the SPY at least once per month — now we’ll be lucky to get 1 every 6 months. Nevertheless, one was triggered yesterday, due to the drop in the markets, and here are the stats.
In all of my year’s running the system, I’ve never seen a SPY OS look like this. It’s fadeable after 5 days. The behavior of the market suggests a high probability bounce for the next 5 trading days, from yesterday’s levels, and then taper off.
In other words, look to fade stocks again mid next week.
If you enjoy the content at iBankCoin, please follow us on Twitter
Great news for those that bought the dip yesterday!
The bigger point is it should be short lived.
Agreed. Looking for a one day gain and selling yesterday’s buys at the open.
Its your funeral…
Short tesla, buy walmart.
It’s setting up for turkey run. Then heads get chopped off
All the bluster and bravado the last few days, but the truth is there has been very little damage to the market’s leading stocks.
A person would need balls of steel to hold short going into Thanksgiving week as a well as a fed minutes week. Risk reward not nearly equal the potential head ache for me.
yup
and a head full of cement