Gold and silver
$XAU.X |
Quote |
Chart |
News |
mentioned recently, remains a low-level cup and handle. Continue to
look for buying
opportunities in calls and call spreads here.

For you OEX traders, essentially the
commentary remains the same:

OK, the VIX is now REALLY REALLY extended. And, once again we have a
plethora of VIX buy (and repeat buy) signals on the Market Bias Page. However,
as you know, the market hasn’t shown any signs of turning just yet. Therefore,
when it does, look for strategies which seek to capitalize on volatility reverting to the mean (i.e.
decreasing). Use caution though as many of these strategies offer limited gains
with the potential for unlimited risk (I think the last few days provided a
great example of this!). Note: see tonight’s Stock Outlook for a discussion on
the VXN.


Follow Up/Looking Ahead

Banks and financials, mentioned recently,
continued to get sell off on Friday. If you have profits here, you might want
to lock in a piece.

Tonight (Friday) there are even more sectors that are in
sharp downtrends. These should set up as potential shorts as soon as the market

Best of
luck with your trading on Monday!

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

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