PeakTrader.com

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Mon: Top Buys KBH DOW CDE Top Sells None

Primary Trades:

If the PPI is in-line or better than expected, a big bounce may take place. However, a pullback may also take place before the CPI Wed, and uncertainty about monetary policy may continue into the end of the month. So, there may be opportunities to buy SPY and IWM Jul puts. If the PPI is worse than expected, it's uncertain if SPX 1,227 support will hold.

Calls: KBH Jun 45 or Jul 45 calls remain buys before earnings Thu. DOW Sep 40 calls are buys on pullbacks.

Secondary Trades:

CDE (and other silver stocks, e.g. SIL and HL, along with AU gold) are long-term buys.

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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.