Cyclicals Poised To Rally?
The
cyclicals
(
$CYC.X |
Quote |
Chart |
News |
PowerRating) appear to be finding support after pulling back into
the area of their recent breakout. This suggests that their uptrend remains
intact. Look for buying opportunities in calls and call spreads here.
For you
OEX traders, the VIX began to implode on Tuesday. Continue to look for
strategies which seek to profit from a reversion to the mean in volatility. Just remember
that these strategies offer
limited gains with the potential for unlimited losses. Make sure you understand
this and/or hedge your bets.
Although the banks
(
$BIX.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, were up on Tuesday, they still look vulnerable longer-term. Continue
to look for buying
opportunities in puts and put spreads here but wait for follow through to the
downside.
Follow Up
Although the airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) still
look like they are in trouble longer-term, you might what to lock in a piece of
profitable put positions here as they are now very oversold.
Best of
luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!