VIX Bounces

  • January 24, 2001
  • Dave Landry

The semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) still look constructive after forming a big picture cup.
Continue to look for buying opportunities in calls and call spreads here.

Major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
look poised to resume their meltdown out of a low-level consolidation. Look for
buying opportunities in puts and put spreads here.

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The utilities
(
$UTY.X |
Quote |
Chart |
News |
PowerRating) also still look like they have the potential to resume their
meltdown out of a pullback from lows. Continue to look for
buying opportunities in puts and put spreads here.

src=”https://tradingmarkets.com/media/images/Landry2/uty012401.gif” width=”470″ height=”320″>

For you OEX traders, the VIX began to reverse
on Wednesday from relatively
low levels. Continue to watch for buying opportunities in puts and put spreads on any
signs of a price reversal.

Best of
luck with your trading on Thursday!

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

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