Oils/Oil Services Look Vulnerable
size=”2″ face=”Arial, Helvetica”>Join me, fellow
TradingMarkets.com content providers, and other traders and
money managers at the Trading Markets 2000 conference at the
Venetian Hotel Resort and Casino in Las Vegas on October
13-15, 2000.
face=”Arial, Helvetica”>Univision Communications
(
UVN |
Quote |
Chart |
News |
PowerRating),
on the
Momentum List, may present an opportunity for covered
calls. You can buy the stock for 123 13/16, and you can sell
the September 125 calls for 6 3/4. This represents
approximately a 6% return (more than 50% annualized, based
on 47 days until expiration) should the stock be called
away.
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On
the short side, major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) and oil services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) appear to be stalling out in their rally
from lows. Look for buying opportunities in puts and put
spreads here.
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Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) sold off on Friday and look like they are
putting in a top. Look for buying opportunities in puts and
put spreads here.
Looking ahead, it
seems like the "buyout euphoria" is beginning to
wane in the broker/dealer sector
(
$XBD.X |
Quote |
Chart |
News |
PowerRating).
Technically, it looks like a minor double top and a major
triple top could be forming.
Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!