Still Set Up For Puts?

July 16, 2001
Dave Landry

Biotech
(
$BTK.X |
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Chart |
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PowerRating), mentioned Friday, was
creamed on Monday. The sector still looks like it might have additional
downside. Therefore, continue to look for buying opportunities in puts and put spreads here.

The semis
(
$SOX.X |
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Chart |
News |
PowerRating), also mentioned Friday, were also creamed on Monday. They too
look like they might have additional downside. Continue to look for buying opportunities in puts and puts
spreads here.

Major drugs
(
$DRG.X |
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News |
PowerRating), which many will
need if the bear market doesn’t end soon, look poised to resume their meltdown.
Look for buying opportunities in puts and put spreads here.

Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) appears to have
stalled out in its rally from lows. This action suggests that its longer-term
downtrend remains intact. Look for shorting opportunities in puts and put
spreads here.

Consumer non-durables
(
$CMR.X |
Quote |
Chart |
News |
PowerRating) tailed
higher on Monday but reversed to close poorly. This action suggests that its
downtrend remains intact. Look for buying opportunities in puts and put spreads
here.