Downtrend Resumes

  • April 6, 2001
  • Dave Landry

One would expect the market to give back some
after such a huge up day, but Friday’s action was extreme. The fact that the
rally didn’t stick suggests that we’re in for continuation of the strong
downtrend, especially in technology.

The semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) gave back the
majority of their gains on Friday. This suggests their breakdown below major
lows remains intact. Look for buying opportunities in puts and put spreads here.

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Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) appears to be
stalling out in its rally from lows. Look for buying opportunities in puts and
put spreads here.

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Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) also appears to
be stalling out after Thursday’s large up day. Look for buying opportunities in
puts and put spreads here.

src=”https://tradingmarkets.com/media/images/Landry3/xbd040601.gif” width=”470″ height=”320″>

Best of
luck with your trading on Monday!

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

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