OBOSS Market Timing 04/11/14 ‘OBOSS at -2.28’

OBOSS is dipping into extreme oversold levels.  There is still room for the market to move lower.

Normally at this level we would consider scaling into longs and adding positive deltas, but considering how long the market was in neutral territory it would be prudent to give the market more room to find support.  The theory being the longer OBOSS hovers in the neutral zone the more energy is built up for the next move.  We expect a small bounce as  market get extremely oversold, but also consider the potential for an extended correction.

If you’re waiting on the side lines, this is a good time to get your shopping list ready for stocks that are trading at a discount.  Look for evidence that support is holding on shorter term time frames before initiating anything in size.

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