Will VIX Continue Lower?

  • March 23, 2001
  • Dave Landry

For you
OEX traders. The VIX continued to implode on Friday. Watch for
strategies that seek to capitalize on a reversion to the mean in volatility.
Just remember to hedge your bets as these strategies offer limited gains with
the potential for unlimited losses. Also, the overall market still remains
vulnerable. Therefore, don’t overstay your welcome here.

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Computer
technology
(
$XCI.X |
Quote |
Chart |
News |
PowerRating) is bumping up against recent resistance. This suggests
that its longer-term downtrend remains intact. Look for buying opportunities in
puts and put spreads here on any resumption of trend to the downside.

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The
cyclicals
(
$CYC.X |
Quote |
Chart |
News |
PowerRating) appear to be stabilizing in their meltdown. Begin
watching for buying opportunities in puts and put spreads here.

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Looking Ahead

Various forms of technology should set up over
the next few days if the overall bounce from lows continues.

Best of
luck with your trading on Monday!

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

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