The Country Fund ETF Universe has a 2-period RSI reading of 2.69 coming into today and the Main ETF Universe is at 2.58. These are the lowest and most oversold combined readings since we started tracking them beginning in 2008. Either everything is going to fall apart (always a possibility in this environment, but I’m not making that bet) or the market is nearing one heck of a short-term bounce.
It’s nice to have high cash positions and I know from your emails that many of you have been hedged during a large part of this bear market decline (well done!) We’ll continue to maintain this safer course until the market becomes overbought.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
And for more on ETF trading, be sure to visit us here to check out the book that Stocks, Futures and Options (SFO) Magazine called one of the best trading books of 2009: High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading.
David Penn is Editor in Chief of TradingMarkets.com