Semis Slide

Once again, there were no covered options that set up.
Remain patient until conditions improve. 

Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
continues to sell
off, but so far, looks like a bullish pullback from highs. Look for buying
opportunities in calls and call spreads here on any resumption of strength.

Defensive issues, such as major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)

and consumer non-durables
(
$CMR.X |
Quote |
Chart |
News |
PowerRating)
, appear to be mounting a comeback
during this vulnerable environment. Look for buying opportunities in calls and
call spreads here.

On the short side, Internet
(
$DOT.X |
Quote |
Chart |
News |
PowerRating)

appears to have stalled out in the area of its recent pivot high. This action
suggests that its downtrend remains intact. Look for buying
opportunities in puts and put spreads here.

src=”https://tradingmarkets.com/media/images/Landry2/dot121300.gif” width=”470″ height=”320″>

The semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
, mentioned Tuesday night, resumed their slide on Wednesday.
Continue to look
for buying opportunities in puts and put spreads here.

src=”https://tradingmarkets.com/media/images/Landry2/sox121300.gif” width=”470″ height=”320″>

Although
the major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating)
were up again on Wednesday, they still look
vulnerable. Look for buying opportunities
in puts and put spreads here on any resumption of weakness.

Best of
luck with your trading on Thursday!

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