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.

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.