PeakTrader.com

[administrator]

Fri: Top Buys OEX OIH IR Top Sells SPY

Primary Trades:

None (cash until Mon, unless market overreacts to upside or downside).

Secondary Trades:

OEX Feb 570 calls may be a buy below SPX 1,260, for a quick trade. SPX often closes the week in the middle of a perceived trading range, e.g. 1,246 (previous support and resistance) or 1,253 1/2 (recent low) to 1,275 (also prior support and resistance). Consequently, SPX may close Fri around 1,260 or around 1,265. However, Feb Max Pain points suggest a slightly higher market next week. Nonetheless, both the market and the Fed are "data dependent."

OIH may close the week around 145 (oil is up slightly in Asia).

IR generally moves with SPX and it's more volatile. Currently, IR is relatively and fundamentally undervalued.

SPY Mar 128 129 or 130 puts may be a buy on market bounces.

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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.