Telecom Still Vulnerable
size=”2″ face=”Arial, Helvetica”>For those of you planning
to attend the TradingMarkets2000 First Annual Traders
Conference at the Venetian Resort, Hotel & Casino in Las
Vegas on October 13-15, I’ll be speaking on Saturday
afternoon following Jay Leno. I’ll also be at the cocktail
party Friday night. Sign up soon, as space is limited.
face=”Arial, Helvetica”>Cirrus Logic
(
CRUS |
Quote |
Chart |
News |
PowerRating), mentioned
night and on the
From Highs List, may still present an opportunity for
covered calls. You can buy the stock for 28 3/8, and you can
sell the October 30 calls for 2. This represents
approximately a 13% return (more than 80% annualized, based
on 52 days until expiration) should the stock be called
away.
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On
the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) once again is a
shallow pullback from lows and looks poised to resume its
strong downtrend. Look for buying opportunities in puts and
put spreads here.
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Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) began to sell off on Tuesday from a
three-bar pullback from lows. Look for a buying opportunity
here in puts and put spreads.
The
VIX began to bounce off from 13-month lows on Tuesday. This
suggests that volatility has begun to revert to its mean.
Continue to look for buying opportunities in OEX puts and
put spreads.
Follow-Up
Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), mentioned
night, was up sharply on Tuesday. You might want to take
a piece off the table here, as this sector is quickly
becoming overbought.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!