Semis To Resume Slide?
Once again, there were no covered options that set up.Â
Gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, has formed a major low-level cup-and-handle. Continue to look for buying
opportunities in calls and call spreads here.
Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) sold off early but
recovered to close well. This action creates a pattern I call a “Trend Knockout”
(TKO). This is where a market in a trend has a sell-off that takes out the two
(at least) prior lows. The theory is that this “knocks out” the weak
hands and often clears the way for the market to trade higher. Look for buying
opportunities in calls and call spreads here.
Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating), which has been in a choppy uptrend as of late, has begun to
pull back. Look for buying opportunities in calls and call spreads here.
On the
short side, the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) appear to be stalling out yet again after
rallying from lows. Look
for buying opportunities in puts and put spreads here.
Although
the major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) were up on Tuesday, they still look poised to break
down from a major topping formation. Continue to look for buying opportunities
in puts and put spreads here.
Best of
luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!