Oversold
There’s not much to look at tonight
(Wednesday) because most sectors are way oversold, and on the upside, those sectors that
are in uptrends may be failing in their pullbacks from highs.
Internet
(
$IIX.X |
Quote |
Chart |
News |
PowerRating) looks poised to resume its strong downtrend. Look for buying
opportunities in puts and put spreads here.
For you
OEX traders, the VIX gapped higher and then began to implode on Tuesday. Continue to look for
strategies which seek to profit from a reversion to the mean in volatility. Just remember
that these strategies offer
limited gains with the potential for unlimited losses. Make sure you understand
this and/or hedge your bets–Wednesday morning is a great example of what can
go wrong.
The banks
(
$BIX.X |
Quote |
Chart |
News |
PowerRating), however and mentioned
recently, remain vulnerable. Continue
to look for buying
opportunities in puts and put spreads here.
Best of
luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!