Most Of Tech Still Vulnerable?
Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating),
mentioned in my Stock Outlook, may provide an opportunity for covered
puts.
You can short the stock at 90 and sell the January 80 puts for 9.
This represents approximately a 21% return should the stock be put to you.
For the
bottom fishers (which I don’t claim to be), the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) appear to
be bouncing out of a double bottom formation. Look for buying opportunities in
calls and call spreads here.
Telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), mentioned Tuesday night, looks poised
to resume its strong downtrend out of a narrow three-bar pullback. Look for buying opportunities in puts and
put spreads here.Â
Internet
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) and
(
$IIX.X |
Quote |
Chart |
News |
PowerRating),
mentioned Tuesday night, still looks vulnerable. Continue to look for buying opportunities in
puts and put spreads here.
Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating), mentioned recently,
also looks vulnerable. Continue to look for buying opportunities in puts and put spreads here.
Computer technology
(
$XCI.X |
Quote |
Chart |
News |
PowerRating) looks
poised to resume its strong downtrend out of a three-bar pullback from lows.
Look for buying opportunities in puts and put spreads here.
Looking
Ahead/Follow Up
On the
long side, the banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) remain strong and may set up as pullbacks
over the next few days.
Consumer
non-durables
(
$CMR.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, continues higher. If you took any trades here, you might want to
lock in a piece of the profits.
Best of
luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!