Oil Service Strong

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 |DGX], on the  Pullbacks
Off Highs List
,face=”Arial, Helvetica”> may present an opportunity for
covered calls. You can buy the stock for 125 3/4, and you can
sell the October 135 calls for 6 1/2. This represents
approximately a 12% return (more than 110% annualized, based
on 39 days until expiration) should the stock be called
away.

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Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating)
, mentioned Friday, broke to new
highs on Monday. Continue to look for
buying opportunities in calls and call spreads.

For you breakout
players, insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
broke to new highs on an expansion of range
on Monday. Look for buying opportunities in calls and call spreads here.

On the short side,
major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
, mentioned recently, can’t seem to rally even in
the face of overall poor market conditions. In other words, one would think that
you would see a flight to quality here. Look for buying opportunities in puts
and put spreads here.

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Best
of luck with your trading on Tuesday!

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