Technlogy Breaks Down; VIX Rises
Like the Nasdaq
and S&P, technology, including telecom
(
$XTC.X |
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PowerRating), computer technology
(
$XCI.X |
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PowerRating), software
(
$GSO.X |
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PowerRating) and Internet
(
$DOT.X |
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PowerRating), broke
down our of topping formations. These sectors will likely set up as shorts on
the first bounce. Begin watching for buying opportunities in puts and put
spreads here.Â
Once again, the major drugs
(
$DRG.X |
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PowerRating) continue to hold up fairly well. Continue to look for buying opportunities in calls
and call spreads here.
Oil service
(
$OSX.X |
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Chart |
News |
PowerRating), mentioned recently, began to break down out of an inverted cup
and handle on Thursday. Continue to look for buying for buying opportunities in puts and put spreads here.Â
Broker/dealer
(
$XBD.X |
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PowerRating), mentioned recently, appears to be breaking down. Continue to
look for buying opportunities in puts and put spreads here.
For you OEX
traders, the VIX is beginning to get stretched to the upside. This action has
triggered a CVR III buy signal. Don’t be a hero though, wait for a reversal in
the VIX and or price before attempting entries.
Best of
luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!