Sox Resumes Slide

There were no meaningful covered options that
set up tonight (Friday).

Consumer non-durables
(
$CMR.X |
Quote |
Chart |
News |
PowerRating)
,
mentioned recently, formed a bullish outside day at new highs on Friday. Look
for buying opportunities in calls and call spreads here.

Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
recouped much of
Thursday’s losses on Friday. This action forms a high level cup-and-handle-ish
pattern. Look for buying opportunities in calls and call spreads here.

On the short side, the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)

reversed on Friday and closed poorly. This 180 from Thursday suggests that their
downtrend remains intact. Look for buying opportunities in puts and put spreads
here.

Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating)
, mentioned recently, still looks poised
to resume its downtrend. Continue to
look for buying opportunities in puts and put spreads here.

Internet,
basis the Dot
(
$DOT.X |
Quote |
Chart |
News |
PowerRating)
, still looks poised to resume its strong
downtrend. Look for buying opportunities in puts and put spreads here.

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Looking
Ahead

Major
drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
, continue to pull back from highs. And in these markets,
many traders need major drugs. Therefore, watch for a setup here over the next
few days.

Best
of luck with your trading on Monday!

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