Low VIX

July 2, 2001
Dave Landry

Once again, Internet
(
$DOT.X |
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PowerRating)
continues to drift higher. And once again, it still looks like it has the potential to resume its
downtrend. Continue to look for buying opportunities in puts
and put spreads here but use caution on the open as there is some late breaking
news here.

The major oils
(
$XOI.X |
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PowerRating) are pulling
back from their lows and look poised to resume their downtrend. Look for buying
opportunities in puts and put spreads here.

Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating)
gapped higher on the open but reversed to close poorly. This action suggests
that they are resuming their downtrend. Look for buying opportunities in puts
and put spreads here.

For you OEX
traders, the VIX remains at relatively low levels (see Monday’s Stock Outlook
for more information). This action sets up CVR III and VI sell signals. Continue looking for buying opportunities in puts and put
spreads here but wait for follow through in volatility and price.