Semi Slide?

Once again, there were no covered options that set up
tonight (Tuesday). We should have plenty of setups once we get a little
volatility back into the market.

Major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
and healthcare
(
$HCX.X |
Quote |
Chart |
News |
PowerRating)
,
mentioned recently, stalled out on Tuesday but still look bullish longer-term. Continue to look for buying opportunities in
calls and call spreads here.

Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
, mentioned recently,
remains strong. Continue to look for buying opportunities in calls and call spreads here.

On the short side, oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating)
,
mentioned recently, still looks vulnerable. Look for buying opportunities in
puts and put spreads here.

src=”https://tradingmarkets.com/media/images/Landry/osx110700.gif” width=”470″ height=”320″>

Continuing on the short side, the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)

have broken their recent uptrend from lows. And on the weekly chart, they are
forming a three-bar pullback from lows. This suggests that they remain
vulnerable and prone to continue their longer-term downtrend. Look for buying
opportunities in puts and put spreads here.

src=”https://tradingmarkets.com/media/images/Landry/sox110700.gif” width=”470″ height=”320″>

 

Best of
luck with your trading on Wednesday!

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