VIX Sets Up
The major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, still look vulnerable. Continue to look for buying opportunities in
puts and put spreads here.
For you OEX
traders, the VIX reversed after hitting near one-month highs. This action sets
up several CVR signals (see Wednesday’s stock outlook) and suggests their may be
opportunities in those strategies which seek to capitalize in a decrease in
volatility. Keep in mind though, that these strategies offer limited gains with
the potential for unlimited losses. Make sure you are hedged and/or have a risk
loss plan in place.
For the bottom
fishers, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) has formed a low level cup and handle. Look for
buying opportunities in calls and call spreads here.
Follow Up/Looking Ahead
Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), mentioned recently,
may set up on the short side over the next few days.
Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) may set up on the
short side on the first bounce.
Once again, if you have any profits left over in Internet
(
$DOT.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, you might want to continue to scale out as
it is approaching its old lows and may find support.
Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, has been down as of late. This, combined with the fact that it
reversed after being down sharply on Wednesday, suggests that partial profits
should be taken here.
Best of
luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!