Oversold

• March 21, 2001
• Dave Landry

Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) appears to be
putting in a big picture top. Look for buying opportunities in puts and puts
spreads here.

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For you
OEX traders, the VIX is approaching panicky levels. Begin watching for
strategies that seek to capitalize on a reversion to the mean in volatility.
Just remember to hedge your bets as these strategies offer limited gains with
the potential for unlimited losses.

Follow
Up

Those sectors mentioned Tuesday: insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating)
and especially broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) and the drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) were
all hit hard on Wednesday. If you have positions here, make sure you lock in a
piece.

src=”https://tradingmarkets.com/media/images/Landry3/drg032101.gif” width=”460″ height=”320″>

src=”https://tradingmarkets.com/media/images/Landry3/xbd033101.gif” width=”460″ height=”320″>

Best of
luck with your trading on Thursday!

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

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