Bounce In Tech?

• February 23, 2001
• Dave Landry

Tonight’s (Friday) commentary is essentially a
repeat from Thursday. Technology in the forms of telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating),
computer technology
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) and software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) hit fresh lows
on today but were able to reverse to close well. This, combined with stock
market signals (see tonight’s Stock Outlook), suggests that there might be a
bounce play here. For the nimble, look for buying opportunities in calls and
call spreads in these stocks and sectors.

src=”https://tradingmarkets.com/media/images/Landry3/xtc022301.gif” width=”470″ height=”320″>

src=”https://tradingmarkets.com/media/images/Landry3/xci022301.gif” width=”470″ height=”320″>

src=”https://tradingmarkets.com/media/images/Landry3/gso022301.gif” width=”470″ height=”320″>

src=”https://tradingmarkets.com/media/images/Landry3/pse022301.gif” width=”470″ height=”320″>

For you
OEX traders, The VIX once again spiked (a) but reversed to close poorly (b). This action sets up
numerous CVR buy signals and suggests that volatility has begun to revert to its mean.
Look for opportunities which seek
to capitalize on a decrease in volatility, but, remember that these strategies offer limited
gains with unlimited risk. Make sure you fully understand this and hedge your
bets.

src=”https://tradingmarkets.com/media/images/Landry3/vix022301.gif” width=”470″ height=”320″>

Best of
luck with your trading on Monday!

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

src=”https://tradingmarkets.com/media/images/Landry/land-dlst.jpg” width=”94″ height=”132″>