Postcards: That's About Right...

I don't think this is that complicated. When the RSI and MFI both hit oversold, it's time to buy... as short covering happens fast. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more You are a free subscriber to Postcards from the Florida Republic. To upgrade to paid and receive the daily Republic Risk Letter, [subscribe here](. --------------------------------------------------------------- [Postcards: That's About Right...]( I don't think this is that complicated. When the RSI and MFI both hit oversold, it's time to buy... as short covering happens fast. [Garrett {NAME}]( Apr 23   [READ IN APP](   Market Update: We’re talking the market today. Proceed below. Dear Fellow Expat: We’re getting ready to head north, so it’s break time in the Florida Republic. Packing is not fun… which is why I don’t do it. My wife is about to scream at me. But I have to cover the markets until the close. That’s what I did. On Friday, the Relative Strength Index (RSI) and the Money Flow Index (MFI) for the S&P 500 hit oversold territory. The RSI was at 30, while the MFI flirted with 20. See the two charts under the SPY price chart? You can see the RSI and MFI bottoming out at the same time. That’s been a good time to buy. In the last few years, due to this higher-interest rate environment, we’ve seen markets sell-off, and people dump stocks… only to see the oversold territory become a place where shorts start to cover their positions. I’ve written about this momentum phenomenon a few times - most recently in Luckbox Magazine, [but this article at Trading Pub offers the deepest dive](. It takes a lot of courage to dive back into the market - especially in periods of lower volume. But we’re now watching a very tasty pop on Tuesday. And, as I noted last week, I expected a snapback rally after Third Friday in April (when options and futures expire - on the third Friday of the month.) This may not be a very long rally - but I’d expect a move back to the 50-day moving average. Whether it’s a bull trap or the start a recovery is too early to estimate. But if you did sell calls on existing positions - and they delivered gains, take some profit. Meanwhile, if you need a refresher, check out our [Six Ways to Trade Negative Momentum Guide.]( Anything that’s now oversold is worth selling credit spreads - whether it’s Occidental Petroleum (OXY) or any of our model portfolio names. The energy sector has seen impressive inflows today - marked by a nice pop in the ProShares Ultra Bloomberg Crude Oil (UCO). If you’ve been waiting to trade PBF Energy (PBF) or other names in the midstream shipping sector, now is a good time to have conviction. In addition, we’ll have a new report on midstream energy names for our subscribers in a week. I’ll be back tomorrow with more insight. Stay positive, Garrett {NAME} Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. Under company rules, editors and writers cannot recommend their positions. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.   [Like]( [Comment]( [Restack](   © 2024 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()