Banks/Cyclicals Poised To Rally

• January 10, 2001
• Dave Landry

The cyclicals
(
$CYC.X |
Quote |
Chart |
News |
PowerRating) still
look like they have the potential to rally out of a pullback. Ditto for the
banks
(
$BKS.X |
Quote |
Chart |
News |
PowerRating). Continue to look for buying opportunities in calls
and call spreads here on any resumption of strength.

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src=”https://tradingmarkets.com/media/images/Landry2/bks011001.gif” width=”470″ height=”320″>

For the bottom fishers, the
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, continue to hold up well. Look
for buying opportunities in calls and call spreads here.

On
the short side, major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, has formed a

Bow
Tie and still looks poised to resume its
meltdown. Look for
buying opportunities in puts and put spreads here.

src=”https://tradingmarkets.com/media/images/Landry2/drg011001.gif” width=”470″ height=”320″>

Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), mentioned Tuesday night, still looks vulnerable. Continue to look
for buying opportunities in puts and put spreads here.

Best of
luck with your trading on Thursday!

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

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