Biotechs Bomb

There
were no meaningful covered option opportunities that set up tonight (Monday).
Remain patient until conditions improve.

The
major drugs
(
$DRG.X |
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, mentioned recently, still look poised to rally out
of a pullback. Continue to look for
buying opportunities in calls and call spreads here.

Insurance
(
$IUX.X |
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continues to
consolidate at high levels and looks poised to continue higher. Look for buying
opportunities in calls and call spreads here.

Consumer non-durable
(
$CMR.X |
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also
continues to consolidate at high levels. Look for a buying opportunity in calls
and call spreads here.

Follow Up

For those who took profits in the biotechs
(
$BTK.X |
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, mentioned last Thursday (a), you might want to lock in a piece
of the profits as they have been decimated since then.

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Broker/dealer
(
$XBD.X |
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PowerRating)
and Internet
(
$IIX.X |
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,
also mentioned last Thursday, were also hit since then. Therefore, you might
want to lock in a piece of the profits here too.

Best of
luck with your trading on Tuesday!

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

P.P.S. Special thanks to Dan Delaney
who filled in while I was away. Nice work!