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Joined: 28 Dec 2005 Posts: 12643
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Posted: Mon Feb 06, 2006 8:24 pm Post subject: Tue: Buys OEX GE AMLN Sells IWM OIH SLB DO NEM AU PNRA |
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Tue: Top Buys OEX GE AMLN Top Sells IWM OIH SLB DO NEM AU PNRA
Primary Trades:
OEX traded between 571 1/2 and 573 3/4, and closed at 572 1/2. Major support are 570 and 567 1/2. Major resistance are 578 1/2 and 581. OEX calls may be a buy for a quick trade or to hedge puts.
If SPX bounces later this week or next week, GE may bounce at least three quarters of a point to first major resistance at 33 1/2.
IWM Mar or May puts can be used to hedge OEX calls, although IWM remains technically bullish. However, if the market falls sharply, IWM should also fall sharply.
OIH and SLB remain volatile and puts may be buys on bounces. Both have the potential to fall sharply.
Secondary Trades:
AMLN may rise into earnings Thu and calls may be a buy on a pullback.
DO reports earnings Wed and puts may be a buy on bounce.
NEM and AU are way up on higher gold prices. Gold has strong short-term resistance at 575 and may pullback to at least 550 (gold closed 0.80 higher at 569 3/4).
PNRA puts may be a buy at 71 1/2 before earnings Thu.
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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. |
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