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Joined: 28 Dec 2005 Posts: 12643
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Posted: Sun Mar 26, 2006 7:49 am Post subject: Mon: Buys OEX EBAY DOW Sells SPY IWM OEX SPX |
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Mon: Top Buys OEX EBAY DOW Top Sells SPY IWM OEX SPX
Primary Trades:
SPY May 130 or Jun 130 puts and IWM May 73 or 74 puts are buys on market bounces. Either SPX is near a top or if SPX continues to rise, it should be significantly lower in Apr than where it is currently.
Secondary Trades:
The following are more risky trades:
OEX and SPX Apr puts are buys Mon, e.g. on a high open, if the TICK 100 unit MA doesn't rise significantly above the 200 unit MA, i.e. where a buy signal is held.
OEX Apr calls may be a buy Mon, e.g. on a low open, at SPX 1,301, because SPX may bounce above 1,305. If TICK gives and holds a buy signal, SPX should continue to rise.
EBAY May 35 or 37.5 calls or DOW Apr 40 calls may partially hedge puts.
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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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