Semis Stall
For those looking for a way to play Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating), mentioned in my Stock Outlook as an outside day down (a), the nearby
in-the-money and slightly out of the money puts are fairly priced.
Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) has formed a
high-level cup and handle (notice the double bottom also). This suggests that it
may be poised to make a continuation move higher. Look for buying opportunities
in calls and call spreads here.
The semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) shot to new highs
both near term and longer term (a), but reversed to close poorly. Don’t get me
wrong, I’m still bullish longer-term, this just looks like a good time to lock
in profits and, for the nimble, an opportunity for buying puts and put spreads.
The
remainder of the sectors are tough to call right now. It appears that
many sectors are in transition, but its too early to tell if they will
follow through.
Best of
luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!