Some interesting stats on my sheets yesterday and without further ado:

SPX 2 day RSI 99 - 5 days in a row over 90;

DJIA 2 day RSI 98 - 5 days in a row over 90;

MID 2 day RSI 99.5 - 5 days in a row over 90;

The NDX and the RUT have been a bit more volatile and are still oversold but are not in the "5 days in a row over 90" category.

The VIX / VXO are 9% and 11% below their respective 10 day SMA's and are on obvious sell signals.

The advance/decline lines are also in overbought territory and the TRIN has been at or under 1.0 for 6 days in a row and seven of the last eight. The Conners trading rule is to buy the markets when the TRIN closes above 1.0 three days in a row and the markets trade above their 200 day SMA and sell when the SPY closes above its 5 day SMA.

Bottom line, the markets are overbought and the SPX is just 16 points away from its 6 year high and the DJIA is just 220 points away from its all time high and everyone has forgotten February 27.

My take - trail stops on long trades but I suspect we are going higher as earnings/guidance probably comes in a bit better than expected as most don't expect much.

And isn't it just AROD's luck that when he can't get a hit he is all the rage on talk radio but when he hits 6 home runs in 7 games not a word to be heard as folks focus on Rutgers and IMUS.


Blogger Burk said...

Well, being paid that much money...he should be at the top of the league in all categories...all the time...


1:47 PM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home