Gold Shines
face=”Arial, Helvetica”>ICN Pharmaceuticals
(
ICN |
Quote |
Chart |
News |
PowerRating), on
the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 33 1/2, and you can sell
the July 35 calls for 1 11/16. This represents approximately
a 9% return (more than 80% annualized, based on 39 days
until expiration) should the stock be called away.
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Gold
and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) look poised to rally out of a
low-level, loosely formed cup-and-handle. Look for a buying
opportunity in calls and call spreads here, but use caution,
as this sector has a history of false starts.
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The
biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), as a sector, gave up most of
Friday’s gains. However, there were some pockets of strength
in several issues, and several held up well (i.e., with
pullbacks and potential setups). Therefore, look for buying
opportunities in calls and call spreads here, but focus on
the strongest individual issues.
The
financials
(
$SPF.X |
Quote |
Chart |
News |
PowerRating) held up well on Monday and look
poised to rally out of a pullback from highs. Look for a
buying opportunity in calls and call spreads here.
Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) is consolidating at higher levels and looks
like it has the potential to resume its longer-term uptrend.
Look for a buying opportunity in calls and call spreads
here.
Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!