S&P Is As Overbought As You Will Ever See It.

Wednesday, October 14, 2009

This is the most overbought market I have ever seen. I have seen several times similar stretched situations but always on the downside like in March where the markets were equally oversold. But the fact is that I have been short the S&P Futures for the last few trading sessions and I am only losing 10 or 12 points. So I am only a session away from being in the money again.

Check the market situation for yourselves. I expect a meaningful correction that can take us to 940 in 2 or 3 trading sessions.

I am not a pure technical trader by any means. But I cannot overlook such an extreme technical situation.

Have you listened to Jose Gonzalez? I find his music inspiring and I like to listen to this sound during trading hours. My favourite is "Down The Line".

Petroleum Oil Gas info Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


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