I have an oversold indicator that I have noticed through time is highly correlated to The Fly’s oversold indicator. My model reaches oversold when below 30 on a daily basis. SPY is now at 29.21. QQQ and IWM are in the low 20s.
The trick is you do not start buying until above 30. So key now is to start making your lists of names that you would like to buy or just buy an ETF like SPY if you want to buy the market.
It is possible we stay below 30 for up to 10 days but often the new buy is almost instant. The reason the oversold can stay oversold is a panic takes hold or we have a crash.If you enjoy the content at iBankCoin, please follow us on Twitter