PeakTrader.com

[administrator]

Thu: Top Buys KBH DHI HD CMOS PTLC Top Sells SPY

Primary Trades:

It may be best to stay in cash and wait for a market overreaction to upside, e.g. SPX 1,260 to 1,275, or downside, e.g. SPX in the 1,220s, for opportunities to trade SPY IWM DIA and QQQQ options. SPY Sep 127 puts may be used to hedge calls and for a potential SPX fall below 1,200 (or SPY below 120).

Secondary Trades:

KBH and DHI may remain volatile. KBH Jul or Aug 45 calls and DHI Jul 22.5 or Aug 25 calls may be bought on pullbacks. HD, a Dow component, fell slightly on over 2 1/2 times normal volume today, which may indicate a bottoming process. HD Aug 37.5 calls at 0.85 or less may be best. CMOS Jul 2.5 calls and PTLC stock at 0.03 may be 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.