Be Cautious Here
Oversold, overbought and oversold in three consecutive days. The good news is that the swings have provided some wonderful opportunities, especially for volatility trading. The bad news is this much daily movement is often a prelude to a transitioning market. This is not assured. All bull to bear markets occur as volatility rises. But not all volatility rises lead to bear markets. This is another chance to view this is a typical short-term oversold condition. Position correctly, predetermine your dollar risk, and place positions on. Do not go further than your risk allows no matter how oversold this becomes. if all the major indices break under their 200 day, we’ll start looking at the short opportunities. Please be cautious here, Prudence always wins out.
Today’s Potential Opportunities on Further Pullbacks:
ETFs: QQQ