Continued Transition

• April 23, 2001
• Dave Landry

Monday’s continued correction has set up
transition patterns (e.g. Bow Ties and first pullbacks) in most of technology.
Watch the nature of these sectors to see if they can rally out of this
correction. If they do, there may be an opportunity for calls and call spreads.
For the more aggressive traders, you might look to enter on intra-day reversals.
Once again, I’ve charted a few of these sectors below–biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating), Internet
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) and the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating).

src=”https://tradingmarkets.com/media/images/Landry3/btk042301.gif” width=”470″ height=”320″>

src=”https://tradingmarkets.com/media/images/Landry3/gso042301.gif” width=”470″ height=”320″>

src=”https://tradingmarkets.com/media/images/Landry3/dot042301.gif” width=”470″ height=”320″>

src=”https://tradingmarkets.com/media/images/Landry3/sox042301.gif” width=”470″ height=”320″>

Looking outside
technology, broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) has formed a cup and handle. Look for
buying opportunities in calls and call spreads here on signs of reversal in the
handle.

src=”https://tradingmarkets.com/media/images/Landry3/xbd042301.gif” width=”470″ height=”320″>

Best of
luck with your trading on Tuesday!

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

P.P.S. Special thanks to Dan Delaney
for filling in while I was away. Nice job Dan!

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

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