Make or Brake Time
- Posted by Frank Zorrilla
- on April 10th, 2012
The Russell 2000 is down 6% from the 3/27/2012 high, down 5 days in a row, RSI2 of 1.32, and today is the second consecutive day that it is trading below its lower bollinger band. According to Telechart Mc Oscillator we are extremely oversold, we have a reading of -376 as I write this. The last time we had such a negative reading was on 11/23/2011, that led to a decent bounce in the days ahead. Bottom line; it rarely pays to push on the sell side and or short side when we are this oversold. What we want to see now is the leaders that have held up well take a hit, so far PCLN is $23 off this mornings high and AAPL is off $12 from today’s high. Selling in the leaders will probably spook out some stubborn bulls late in the sell off.
Irregardless of what is going on around the world, once you get this extreme in the McClellan Oscillator you normally get some type of relief from the selling 1-3 days out.
Russell 2000 should find some support at around 780
Positions: 0 stocks, started a flyer in TNA due to the oversold nature of this market.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
blog comments powered by Disqus
Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
Sign up for ZorTrades FREE updates.
Additional Articles and Updates
- The Current State Of The Market
- 15 Tips To Improve Your Trading
- What You Can and Cannot Control In Trading
- Trade Ideas 12/3
- This Is The Only Way To Invest
- In Case You Are Wondering What Is Happening Underneath the Surface
- How To Manage Money Like Joel Greenblatt
- 6 Lessons From The Top Endowments on How To Manage Your Money
- Swing Traders LinkFest, Bad News Bears
- Swing Traders LinkFest–TrendFollowing, Flame Out, Crude, Non-Farm