Do or Die for Major Oils
Just
a reminder, I’ll be speaking on the afternoon of Saturday, October 14th at the TradingMarkets2000 First Annual Traders
Conference. I’ll also be available for a one-hour private workshop held later
that day.
I’m pleased to announce that we recently launched the Trader’s
Galleria. Check it out, there you’ll find books, software, trading courses,
computers and just about everything else a trader needs to be successful. You
can even pre-order my upcoming book on swing
trading at a 20% discount.
Heads
up! After the close, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) announced that it would not meet
earnings expectations. The stock is trading more than 13 points lower in early after-hours trading. This will not bode well for the market on Friday. At the time
this is being published, the December Nasdaq 100 futures are trading nearly 100
points lower in Globex after-hours trading.
face=”Arial, Helvetica”>Aviron
(
AVIR |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, may provide an opportunity for
covered calls. You can buy the stock for 51 and sell the November 55 calls
for 5 3/4. This represents
approximately a 19% return (more than 150% annualized, based
on 47 days until expiration) should the stock be called
away.
width=”470″ height=”320″>
Based on the Intel news, tech will be hit
especially hard on Friday’s open. You might want to avoid the various sectors
here (long or short) until things shake out.
Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) appears to have pulled back to its previous breakout level and
looks poised to make another leg higher.
Major
oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) have pulled back to a support level. This now puts
them in a do or die position. If they break this level, then avoid them, if they
rally from here, look for buying opportunities in calls and call spreads.
width=”470″ height=”320″>
Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) appears to be rallying
out of a pullback. Look for a buying opportunity in calls and call spreads here,
but don’t overstay your welcome as the longer-term trend remains down.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!