VIX Reverses From Lows

  • February 2, 2001
  • Dave Landry

The banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) appear to be
holding up well after a few days of correction. This action suggest that they
have the potential to rally out of a high level cup and handle. Look for buying
opportunities in calls and call spreads on any resumption of strength.

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Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) continues to hold
up well and looks poised to rally out of a high-level cup and handle/double
bottom. Look for buying opportunities in call
and call spreads here.

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For you OEX traders, the VIX reversed from relatively
low levels creating CVR II and VI sell signals. Look for buying
opportunities in puts and put spreads here.

Best of
luck with your trading on Monday!

P.S. Reminder:
Protective stops on every trade!

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