VIX Implodes
Once again, there were no covered options that set up.
Continue to remain patient until conditions improve.Â
Gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, is in its first pullback since breaking out of a cup-and-handle
formation (see recent commentaries). Look for buying opportunities in calls and call spreads here.
Consumer non-durable
(
$CMR.X |
Quote |
Chart |
News |
PowerRating),
mentioned recently, is just shy of taking out its old highs. Continue to look for buying
opportunities in calls and call spreads here.
For you bottom fishers, the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
look like they might be forming a double bottom. Look for a buying opportunity
here, but don’t overstay your welcome as the long-term trend still remains
down.
Looking
Ahead/Follow Up
If you
took trades off the VIX, you might want to lock in a piece of your profits as
the VIX began to implode on Friday.
On the
long side, the banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) remain strong and may set up next week on a
pullback.
On the
short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) remains in a weak position and may set up
next week on a pullback from lows.
Best of
luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!
P.P.S. Happy Holiday!!!