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Mon: Top Buys OEX AMLN OXY KO Top Sells SPY IWM OIH SLB DO NEM PNRA

Primary Trades:

OEX Feb in-the-money or Mar calls may be an excellent hedge for SPY and IWM Mar puts, because next week may be volatile. OEX closed at 572 1/4 (the Fri low was just over 571). Major support is 570 (Dec and Jan lows), followed by 567 1/2 (200-day MA). Major resistance is the 50-day MA at 578 1/2.

SPX resistance zone is 1,270 to 1,280 (SPX closed at 1,264 Fri), and major support levels are 1,259, 1,246, and much lower. So, SPY and IWM Mar puts may be buys on market bounces (also, SPX Feb puts near 1,280).

Secondary Trades:

AMLN reports earnings Thu and may rise two points into earnings.

OXY closed at 91 1/2 Fri after hitting an all-time high at 98 earlier in the week and reports earnings Tue before the open. Oil stocks have risen early in the week recently and fell late in the week. Perhaps, OXY calls are buys hedged with OIH SLB and DO puts (DO reports earnings Wed), by taking advantage of volatility.

KO also reports earnings Tue before the open and closed just below 41 Fri. KO has generally been in a downtrend for several years. However, it's in the lower range of a 40 to 44 range.

NEM puts may be a buy above 61, since gold is severely overbought (also, AU reports earnings Fri and puts may be a buy above 60 1/2).

PNRA reports earnings Thu and puts may be a buy, after the big rally recently.

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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.