Set Up For Puts

• March 26, 2001
• Dave Landry

The bounce from lows, especially in
technology, has set up many pullbacks from lows.

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Computer
technology
(
$XCI.X |
Quote |
Chart |
News |
PowerRating), mentioned Friday night, appears to be stalling out
at recent resistance. This suggests
that its longer-term downtrend remains intact. Look for buying opportunities in
puts and put spreads here on any resumption of trend to the downside.

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Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) has now rallied back to the area of its recent breakdown. If it
stalls out in here, a challenge of the old lows is likely. Begin
watching for buying opportunities in puts and put spreads here.

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The
banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) have also rallied into the area of its recent breakdown.
Look for buying opportunities in put and put spreads here on any signs of
weakness.

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Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) is yet another sector that has rallied back to the area of its
recent breakdown. Look for buying opportunities in puts and put spreads here.

Best of
luck with your trading on Tuesday!

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

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