Technology Correction Over?
On Wednesday, the media was celebrating the
fact that technology was up while other sectors lagged. However, under the
surface, it sure looks like many tech related sectors were stalling out.
Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) stabbed above
recent resistance but reversed to close poorly. This suggests that its
longer-term downtrend remains intact. Look for buying opportunities in put and
put spreads here.
Internet
(
$IIX.X |
Quote |
Chart |
News |
PowerRating) stabbed higher but
closed off of its highs. This suggests that its rally from lows may be losing
steam. Look for buying opportunities in puts and put spreads here.
Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, reversed on Wednesday to give up most of Tuesday’s gains. This action
suggests that its downtrend remains intact. Continue to look for buying opportunities in puts and
put spreads here.
Looking
Ahead
Drugs
may be stalling out and could be setting up as a pullback from lows on the
weekly chart.
Best of
luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!