This Week in Exodus: No Man’s Land

Last week I summed up with a warning that we were at overbought levels for several important sectors of the market, namely semis and Asia.

On Friday, I alerted members to a possible oversold condition occurring in the generic drug sector. The oscillator is approaching levels that it has bounced from in the past.

Earlier in the week, I initiated positions in a sundry of gold positions, representing 25% of a $100k account. I try to keep it simple and super transparent for people following my ideas and trades.

We didn’t close oversold. We didn’t close overbought. It was a bad week for stocks, but not horrible. There is a distinct chance that we bounce off Friday’s closing points and vomit up the rest of the week. Truth be told, the future is unclear.

This is one of those blackout periods when trading a lot fucks people. Since everything is in flux, especially after the terror attack in Florida, I would expect more of the same tomorrow, a resumption of the risk off trade into gold and bonds.

With the 50% cash remaining in my account, I intend to allocate it in tranches, upon an Exodus oversold signal, into SPY. We haven’t seen one for a few months, so its been a little quiet.

My gut tells me it’s about to get a lot more colorful around here soon.