Jim,
Excellant point. The assumption then is that the market has already compensated with the recent corrections; therefore the various sectors are now at equal starting points.
One thing that I have noticed is that starting a few weeks ago the HiTechs was actually leading the overall market up with either the DOW lagging or even with the NAZ. With the last few sesseions both the DOW and NAZ have been moving in line with each other, which gives some confirmation of what you are saying.
You just help me conclude that it will be ok to play HiTech PUTS, although I will probably stay with the broader HiTech indexes like the NDX and MSH, rather than go with the the more specialized HiTech indexes like the SOX, IIX, XCI, DDX.
I decided to stay away from the BKX since the interest rates are so low and has not yet found a bottom. The DRG is now considered a have for safety. The XBD and PNX are heavily influenced by rumor/news, therefore any good news could still send them up. So I am left with the broader indexes like the DJX, OEX, SPX, XMI.
Thanks for your input.
As of right now the futures are up 1.50. I may be entering PUTS today.
Seeya |
