Semis To Catch Up With Rest Of Tech?
The banks
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$BIX.X |
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PowerRating) appear to be on the
verge of breaking down out of a major topping formation. Look for buying
opportunities in puts and put spreads here.
The
airlines
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$XAL.X |
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PowerRating), mentioned recently, dropped again on Monday. This
suggests that their downtrend remains intact. Continue to look for buying opportunities in puts and put spreads here.
The
semis
(
$SOX.X |
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PowerRating) are about the only area of technology that remain relatively
overbought. Look for buying opportunities in puts and put spreads here as they
will likely play catch up.
For you
OEX traders, the VIX spiked higher on Monday to levels not seen in months. This
may set up a reversion to the mean (implosion) volatility play. Just remember
that strategies which seek to capitalize on an implosion in volatility offer
limited gains with the potential for unlimited losses. Make sure you understand
this and/or hedge your bets.
Follow Up
As you know, the technology sectors mentioned
recently along with broker-dealer
(
$XBD.X |
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PowerRating) got creamed again on Monday.
If you still have positions here, I suggest that you continue to lock in
profits.
Major drugs
(
$DRG.X |
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PowerRating), also mentioned
recently, were also hit hard on Monday. Make sure you lock in a piece here too.
Looking Ahead
Oil service
(
$OSX.X |
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News |
PowerRating) has begun to pull
back from highs. If it can stabilize over the next few days, it may set up on
the long side.
Best of
luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!