Sunday, November 27, 2011

Indices Are Deeply Oversold

SGS is LONG (As of close of 8/24/11) 

Major indices have been down for 7 consecutive days making the market extremely oversold as we move into one of the seasonally strongest periods of the year.   Futures are sharply higher as of this writing, but we have to wait to see where they are trading tomorrow near close.  

The downside risk is limited in my opinion, maybe a retest of early October lows (around SPX 1070) at the worst.  A panic sell off to that support is definitely a great buying opportunity.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.