THE NUMBERS

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.