Biotechs Reverse
Biotech
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$BTK.X |
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PowerRating),
mentioned recently, tailed lower (a) but reversed to close fairly well.
This, in spite of a huge drop in Affymetrix
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AFFX |
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PowerRating), one of its components.
Look for buying opportunities in calls and call spreads but focus on the
individual issues in the sector versus the overall sector itself. See tonight’s
Stock Outlook for some ideas here.
The major drugs
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$DRG.X |
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PowerRating)
also appear to be holding up very well. Look for buying opportunities in calls
and call spreads here.
The banks
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$BKS.X |
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PowerRating)
appear reversed to close well after tailing lower. This action suggests their
longer-term choppy uptrend remains intact. Look for buying opportunities in
calls and call spreads here.
For you OEX
traders, the VIX reversed after hitting a 6-day high. Look for buying
opportunities in calls and call spreads here but don’t overstay your welcome as
the VIX remains at relatively low levels.
Looking Ahead
Oil service
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$OSX.X |
Quote |
Chart |
News |
PowerRating)
looks like it may be putting a top in and is vulnerable to a breakdown. Begin
watching for buying opportunities in puts and put spreads here.
Best of
luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!