Drugs Slide

  • January 11, 2001
  • Dave Landry

Once again, The cyclicals
(
$CYC.X |
Quote |
Chart |
News |
PowerRating) still
look like they have the potential to rally out of a pullback. Continue to look for buying opportunities in calls
and call spreads here on any resumption of strength. 

The banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) also look
like they have the potential to rally out of a pullback. Look for buying
opportunities in calls and call spreads here.

On
the short side, major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), mentioned recently as a

Bow
Tie (a), still look vulnerable.
Continue to look for
buying opportunities in puts and put spreads here.

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Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) has rallied back to the area of its recent breakdown (a), if it
stalls in here, it’s likely headed back to its old lows. Look for buying
opportunities in puts and put spreads.

src=”https://tradingmarkets.com/media/images/Landry2/btk011101.gif” width=”470″ height=”320″>

Follow
Up

Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, was down again on Friday. If you have any
trades here, you might want to lock in a piece of your profits.

Best of
luck with your trading on Friday!

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

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