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Larry McMillan, options expert and editor of The Daily Strategist, offers a technical out look on the market’s “oversold rally” as well as a new trading long position in Ryland Group (NYSE: RYL).

“The massive oversold condition finally asserted itself and buyers gained confidence. The appears to be completely due to the massive oversold condition that existed. Does this mean ‘the’ bottom is in? I don’t think so, but it certainly means ‘a’ bottom is in - and should last for a while.

“Volatility indices ($VIX and $VXO) rallied during the latest selling, and as the rally unfolded, both of these indices fell, confirming the buy signals they registered yesterday. Moreover, the $VIX futures continue to trade at a heavy discount, which is another bullish factor.

“The confluence of buy signals from the oversold condition should be able to keep this rally going for at least a few
weeks. However, the larger picture is not so positive. There was major damage done, and most stocks are
going to need time to build bases.

Continue reading Technical expert buys Ryland (RYL) for ‘oversold rally’

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This entry was posted on Thursday, January 24th, 2008 at 11:47 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.