PeakTrader.com

[administrator]

Thu: Top Buys DOW JBLU WMT Top Sells SPY OIH IWM TLT

If OIH bounces above 143 1/2, Jan 145 puts may be a buy, for a quick trade. Oil may pullback over the next week (see revised & updated Thu Trading Plan), which may be bearish for OIH and bullish for DOW JBLU and WMT. The risk is high SPX will pullback at least 5% within three months. Consequently, it may be best to stay heavy in cash or buy SPY OIH IWM and TLT puts, when those ETFs bounce. SPY Mar or Jun at least two point in-the-money puts may be best (e.g. Mar 130), when SPY is above 128. Also, similar puts should be bought for OIH IWM and TLT. OIH sometimes moves opposite SPY. TLT has been moving opposite SPY. IWM is relatively overvalued compared to QQQQ (because large caps lagged the bull market). There may be enough volatility to eventually make gains on all four ETFs, while managing risk.