Broker/Dealer Still In Weak Position
Even though the market rallied on Monday, many sectors, especially technology,
still remain oversold. Therefore, continue to wait for a retrace from lows in
these sectors before
entering new put positions.
Although
broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) was up sharply on Monday, it still looks poised to resume its strong downtrend.
Continue to look for buying
opportunities in puts and put spreads here but wait for follow through to the
downside.
Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still looks vulnerable. Continue to look
for buying opportunities in puts and put spreads here.
Looking
Ahead
Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) has formed an inverted cup and is in day one of what could be
the beginning of a handle. This sector could set up on the short side over the
next few days.
Best of
luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!