PeakTrader.com

[administrator]

Thu: Top Buys OIH Top Sells SPY OEX

Primary Trades:

Over the past three weeks, oil fell from 69.20 to 57.65. Major support is the Nov low at 55.33, which is the lowest level in eight months. Major resistance levels are the uptrend line from the Nov low at 59.90 and the 200-day MA at 62.35. If oil stabilizes or rises somewhat, SPX may pullback. SPY Mar 128 to 130 puts remain a buy.

Secondary Trades:

OEX Feb 585 puts and OIH Feb 130 or 135 calls may be buys tomorrow. OEX has the potential to pullback 2 1/2 points to 580 or fall to 575 on Fri. OIH has the potential to rise 1 1/2 points to 135 or towards 140 on Fri.

------------------------------------------------------------------------------------

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.