PeakTrader.com

[administrator]

Thu: Buys None Sells SPY IWM MDY

Primary Trades:

SPY (large caps), IWM (small caps), and MDY (mid caps) Feb in-the-money or Mar puts may be buys on market bounces, given the potential of SPX falling to 1,246 (or SPY falling 3 1/2 points to below 125) in Feb. It may be unnecessary to make riskier trades, at this point, because the potential returns of these three ETFs are high.

Secondary Trades:

None

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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.