By Lawrence G. McMillan
The feature article goes into some depth as to what an overbought condition actually means. In most cases, a severely overbought market does not generate a sell signal right away (and neither does a severely oversold market generate a buy signal immediately). The most overbought and oversold dates in history are included in the article.
Our market opinion is on page 6. There have been plenty of opportunities for simple sell signals to be generated, but the bears have not been able to accomplish even that. They still might, but it’s looking more like the bulls will eventually seize the opportunity once again. A conditional SPY put buy is on page 6.
We will not be using the First Day of the Month System for the remainder of the year, preferring instead to concentrate on the seasonal trades that will occur (page 7).
A naked put sale in JCP is on page 8. An earnings-based diagonal spread in WAG is on page 9.
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