Healthcare Sick?
size=”2″ face=”Arial, Helvetica”>For those of you planning
to attend the TradingMarkets2000 First Annual Traders
Conference at the Venetian Resort, Hotel & Casino in Las
Vegas on October 13-15, I’ll be speaking on Saturday
afternoon following Jay Leno. I’ll also be at the cocktail
party Friday night. Sign up soon, as space is limited.
face=”Arial, Helvetica”>Quest Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating), mentioned Monday night and on the Pullbacks
Off Highs List,face=”Arial, Helvetica”> may still present an opportunity for
covered calls. You can buy the stock for 123 3/4, and you can
sell the October 135 calls for 5 7/8. This represents
approximately a 14% return (more than 130% annualized, based
on 30 days until expiration) should the stock be called
away.
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There’s not much sector action to look at tonight (Tuesday). The
semis
(
$SOX.X |
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Chart |
News |
PowerRating) remain in a slide but haven’t offered any entries. Ditto
for computer technology
(
$XCI.X |
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Chart |
News |
PowerRating) and, to a lesser extent, the nets
(
$IIX.X |
Quote |
Chart |
News |
PowerRating). Oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) and oil service
(
$OSX.X |
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Chart |
News |
PowerRating) appear to
be correcting. And telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) remains weak, but so far, appears
to be going lower with less vigor. In other words, it may be trying to find a
bottom.
Support, once broken, becomes resistance. With that said,
healthcare
(
$HCX.X |
Quote |
Chart |
News |
PowerRating) appears to be hitting resistance near a major support
level. Look for buying opportunities in puts
and put spreads here.
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Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!