SOX Slides
size=”2″ face=”Arial, Helvetica”>Join me, fellow
TradingMarkets.com content providers, and other traders and
money managers at the Trading Markets 2000 conference at the
Venetian Hotel Resort and Casino in Las Vegas on October
13-15, 2000.
face=”Arial, Helvetica”>Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating), on the
Momentum List, may present an opportunity for covered
calls. You can buy the stock for 71 3/16, and you can sell
the September 75 calls for 3 5/8. This represents
approximately an 11% return (more than 80% annualized, based
on 50 days until expiration) should the stock be called
away.
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face=”Arial, Helvetica”>Defensive issues such as consumer
nondurables
(
$CMR.X |
Quote |
Chart |
News |
PowerRating) and drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
rallied on Thursday. However, I wouldn’t get too excited
about these groups just yet.
Follow
up: The semis, mentioned recently as a potential put play,
imploded again on Thursday. You might want to lock in a
piece of your profits, as the market is very oversold and
due for a bounce.
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Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), also mentioned recently, rose another 3% on
Thursday. You might want to lock in a piece of your profits
here, as this sector is becoming overbought and is due for a
correction.
Looking
ahead, it’s important for broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) to
stabilize and rally back through old highs; otherwise, it
may be putting in a top.
Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) are beginning to look vulnerable.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!