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Wed: Top Buys OEX DOW WMT OIH GE Top Sells IWM PNRA

Primary Trades:

OEX traded between 568 1/4 and 573, and closed at 568 3/4. The 200-day MA is 567 1/2 and the 50-day MA is just above 578, which may be the trading range over the next week. OEX fell, in part, because energy stocks fell sharply.

DOW and WMT pulled-back sharply recently and are fundamentally undervalued.

OIH calls may hedge DOW and WMT calls at this point.

IWM remains relatively overvalued and Mar puts may be buys above 72 to partially hedge calls.

Secondary Trades:

GE closed at a one-year low above 32 1/4. So, it may be a high risk trade now, although it should rise with the market.

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.