During the current market uptrend, since bottoming in March, SPY has reached extreme overbought stochastics (+90) 8 times. Of those 8 overbought short entries, 5 would qualify as successful trades
SPY is again overbought, with a +94 reading. This tells me to lighten up a little on my swings and to shorten my timeframes of trading.
Overbought/oversold indicators DO NOT TELL you if the market is due for an upside or downside. It is used to strengthen or lessen the probability. As we have reached an extreme overbought reading this tells me that there is a greater probability of a pullback then of continued strength.
Metals and Ag are on fire. All require pullback for entry if you doing a swingtrade. A few are so extended they actually might be shorted on continued strenght on a kunal snapback play
$pcx for example a run up close to 19.50-20 would setup a snapback play with good probability for success
Here is a list of some bullish stocks for a swingtrader
BAC (15-16),CAL (19),UAUA (13),LUV (11-11.50), LULU (30),JASO (6.50)
Jaso is a stock thats extended but looks good on a pullback. Its gapping up a litle bit looks good on a breakout pullback play. Must be a low volume pullback
If you dont like swingtrading and waiting for pullbacks there are still some quick hitters in play here
I will be still trading $bee on dips to the 1.8s. Somebody bought a 750k block last night. This thing looks good.
$pnx if it can break through 2.82-2.83 on volume it still got potential. I have a position and will add on strenght
$sgy looks like its ready to make a move for quick run too.
$heat and $useg look like they can breakout right now too