PeakTrader.com

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Mon: Buys None Sells SPX SPY IWM OIH SLB CME SBUX

Primary Trades:

Fundamental and technical indicators suggest the stock market will fall sharply after next week. So, if SPX rises to about 1,290, SPX SPY and IWM puts may be buys. SPY and IWM Mar or later puts may be bought first, and if the market rises higher, SPX Feb puts may be a buy.

Oil prices may pullback within a week or two after the OPEC meeting. So, OIH Mar or Apr puts are buys, when OIH bounces. SLB is relatively overvalued compared to OIH, and SLB puts are also buys.

Secondary Trades:

CME reports earnings Tue. Feb 410 to 380 puts may be a buy above 405.

SBUX reports earnings Wed. Feb 32.5 puts may be a buy on a small SBUX bounce.

Also, see pages five and six of Chart Room for other potential trades. The possibilities of large moves on earnings should be considered for MO PD and GOOG.

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Primary Trade: An intermediate or long term trade. Timing can be off substantially. Volatility not a factor. Risk is low to moderate. Potential return is often moderate.

Secondary Trade: A short term trade. Timing must be accurate or volatility must be high. Risk is high. Potential return is high.

Secondary Trades should be generally avoided, although considered. Note: If Secondary Trades are taken, they may affect Primary Trades.