Cyclicals Poised To Rally

Heads up! There is late-breaking news
regarding the election. See my Stock
Trading Outlook
for details.

There were no covered options that set up
tonight (Friday).

Consumer non-durables
(
$CMR.X |
Quote |
Chart |
News |
PowerRating)
, mentioned recently, will likely continue to hold up well in
this vulnerable environment. Continue to look for buying opportunities in calls and call spreads here.

The
chemicals
(
$CEX.X |
Quote |
Chart |
News |
PowerRating)
and cyclicals
(
$CYC.X |
Quote |
Chart |
News |
PowerRating)
closed well after
recently pulling back. This action suggests their uptrend remains intact. Look
for buying opportunities in calls and call spreads here.

src=”https://tradingmarkets.com/media/images/Landry2/cyc120800.gif” width=”470″ height=”320″>

Internet
basis the Dot
(
$DOT.X |
Quote |
Chart |
News |
PowerRating)
looks like it has the potential to resume its
strong downtrend. Look
for buying opportunities in puts and put spreads here.

src=”https://tradingmarkets.com/media/images/Landry2/dot120800.gif” width=”470″ height=”320″>

Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating)
,
mentioned recently, still  looks vulnerable. Continue to look for buying opportunities in
puts and put spreads here.

Looking Ahead

Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
continues its strong
uptrend. There may be buying opportunities here on the next pullback.

Best of
luck with your trading on Monday!

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