Health Care Looks Healthy
Due to a scheduling conflict, Dave Landry will be
unable to write his Stock Trading Outlook. Tonight’s column is written by Dan
Delaney. Dave will be back on Monday, November 27.
There were no meaningful covered option opportunities that set
up tonight (Wednesday)
Despite the drubbing in the Nasdaq, the health care sector
(
$HCX.X |
Quote |
Chart |
News |
PowerRating)
held up fairly well as it fell less than 1%. Continue to look for buying
opportunities in calls and call spreads here, especially once the election confusion
gets settled.
The Internets
(
$GIN.X |
Quote |
Chart |
News |
PowerRating) continue to face intense selling
pressure as the Goldman Sachs Internet sector sank to yet lower lows to close
at a new two-year low.Â
Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) held out for a positive close of 0.4%
Wednesday as they avoided some of the Nasdaq downdraft. If biotechs continue to
pullback from lows, there could be some setups to the short side.
Â
Broker/dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) fell more than 4% Wednesday as it
fell further below its 200-day moving average that it crossed below on Monday.
If the weakness continues in the index, traders may look for buying
opportunities in puts and put spreads.
Best of luck with your trading on Friday, and Happy
Thanksgiving.
P.S. Reminder: Protective stops on every trade!