Broker Break Out, Part II
size=”2″ face=”Arial, Helvetica”>Join me, fellow
TradingMarkets.com content providers, and other traders and
money managers at the Trading Markets 2000 conference at the
Venetian Hotel Resort and Casino in Las Vegas on October
13-15, 2000.
face=”Arial, Helvetica”>For a back-to-basics look at
retracement levels, see my latest trading lesson,
Introduction To Retracements.
face=”Arial, Helvetica”>Cell Therapeutics
(
CTIC |
Quote |
Chart |
News |
PowerRating), on
the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 31 1/8, and you can sell
the August 35 calls for 2 5/8. This represents approximately
a 21% return (more than 200% annualized, based on 38 days
until expiration) should the stock be called away.
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Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, continued its breakout
on Tuesday. Continue to look for buying opportunities in
calls and call spreads here.
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Major
drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, continue higher.
Continue to look for buying opportunities in calls and call
spreads here.
On
the short side, banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) appear to be stalling
out in their rally from lows. Look for buying opportunities
in puts and put spreads here.
For
the OEX traders, the VIX is now at relatively low levels.
This, combined with CVR I and CVR VI sell signals on the
Bias Page, suggests that there may be a buying
opportunity in puts and put spreads. Don’t be a hero,
though: In light of the positive Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) news,
the market will likely trade higher early on. In other
words, don’t fight the tape — wait for confirmation to the
downside.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!