OBOSS Market Timing 05/15/13 ‘OBOSS at 2.73’

OBOSS continues to hover at extreme overbought levels.  OBOSS has been in extreme territory and signaling caution since May 3rd 2013.  Since that time the S&P 500 has climbed 2.3% and continues to make new all time highs.  In the past we have seen OBOSS hover in extreme territory for five to ten trading days before seeing a change in the market.

Considering that we are seven trading days into extreme territory there is a good chance that the opportunity to protect profits and reduce directional risk is coming to a close.  Do not let the market lull you into being complacent with the constant grind higher.

OBOSS levels higher than 2.5 is a very good indication of an impending pull back in prices.  This is a good time to reduce risk, close margin, and take profits by scaling out on moves higher.

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