Broker Breakout, Part III
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”>Tonight (Wednesday), I’m unable to
find any covered-call opportunities that I think are
worthwhile. However, for a potential long option play, the
nearby at-the-money and the slightly in-the-money options on
Quest Communications
(
Q |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, are fairly priced. Look for possible
buying opportunities in combinations or in outright calls
here.
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The
Nets
(
$IIX.X |
Quote |
Chart |
News |
PowerRating) have been bottoming for quite some
time. The Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) news was just what they needed
to get going again. Look for buying opportunities in calls
and call spreads here, but focus on the individual issues,
as the overall sector may still have some work left to do.
For instance, take a look at the Street.com Internet Index
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) versus the Interactive Week index
(
$IIX.X |
Quote |
Chart |
News |
PowerRating).
On
the short side, banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still look vulnerable. Continue to look for buying
opportunities in puts and put spreads here.
Continuing
on the short side, major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) and oil
service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) appear to be finished with their
analyst-upgrade party. Look for buying opportunities in puts
and put spreads here.
For
the OEX traders, the VIX remains at relatively low levels.
This suggests that there may be a buying opportunity in puts
and put spreads. However, like I said Tuesday night, don’t
be a hero: Wait for confirmation to the downside.
Follow
up: Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), mentioned over the past
few nights, melted up on the Paine Webber
(
PWJ |
Quote |
Chart |
News |
PowerRating) buyout
news (thank you, Paine Webber!). If you have profits here,
you might want to lock in a piece.
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Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!