Don’t Bank On It; VIX Reverses
Biotech
(
$BTK.X |
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PowerRating),
mentioned recently, remains set up as a low level cup and handle. Continue to
look for buying
opportunities in calls and call spreads here, but, don’t overstay your welcome as
there is overhead resistance.
Gold and Silver
(
$XAU.X |
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PowerRating)
remains also set up as a low level cup and handle. Look for buying opportunities
in calls and call spreads here.
On the short side,
the banks
(
$BKS.X |
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PowerRating) are now set up as a Bow Tie sell. Look for buying
opportunities in puts and put spreads here.
For you OEX traders, tonight we have a
plethora of VIX buy signals on the Market Bias Page. Therefore, look for
strategies which seek to capitalize on volatility reverting to the mean (i.e.
decreasing). Use caution though as many of these strategies offer limited gains
with the potential for unlimited risk.
Best of
luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!