PeakTrader.com

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Fri: Top Buys GM Top Sells SPY IWM

Primary Trades:

SPY may be on the verge of a big pullback. OEX, which has led SPX, may be creating a bearish complex head & shoulders pattern, with the head created in early Jan. Consequently, SPX may fall to the late Dec low just below 1,246 in Mar, and perhaps lower. SPY puts are buys above 129 1/4.

IWM created a bearish doji today and perhaps a double top. Moreover, MACD may be creating a bearish kiss. First major support is the mid-Feb low and 50-day MA both just below 70 1/2. The Jan low at 69 1/4 is next major support and the late Dec low at 66 is further support. Puts are buys above 73.

Secondary Trades:

GM's low market cap gives it the potential to become volatile. Major resistance is the Oct low and Jan high both at 24 1/2. Major support may be above 20, because the late Dec low at 18.12 was the lowest level in over 30 years and may be a long-term low.

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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.