Top Trade Ideas for the Week of April 30, 2012: Bonus Idea
- Posted by Greg Harmon
- on April 30th, 2012
Here is your Bonus Idea with links to the full Top Ten:
China National Offshore Ticker: $CEO
China National Offshore , $CEO, broke above long term resistance at 203.50 to start February getting as high as 235 where a lot of consolidation took place in mid 2011. Pulling back and finding support at the 200 day Simple Moving Average (SMA) it is now moving back higher. It has support for more upside from a rising Relative Strength Index (RSI) that is on the verge of turning bullish and a Moving Average Convergence Divergence (MACD) indicator that has been trending higher since April 9th and recently crossed positive. A symmetrical move higher would take it to 255 by mid July. There is resistance higher at 220 and 224 followed by 230 and 234 before 240 and 250. Support lower is found at 203.50 and 197 followed by 194.50 and 190.45. Below that key support is at 173-178.
Trade Idea 1: Buy the stock using a stop at 203.50.
Convert it to a $5 trailing stop on a move over 220.
Short Term Options
Trade Idea 2: Buy the June 220 Calls using a stop on the stock at 203.50.
These were offered $4.20 late Friday.
Trade Idea 3: Sell the June 190 Puts using a stop on the stock at 203.50.
These were bid at 2.80 late Friday.
Trade Idea 4: Buy the June 220/190 Bullish Risk Reversal using a stop on the stock at 203.50.
These were offered at $1.40 late Friday.
Medium Term Options
Trade Idea 5: Buy the September 220 Calls using a stop on the stock at 203.50.
These were offered $10.90 late Friday.
Trade Idea 6: Buy the September 220/250 Call Spreads using a stop on the stock at 203.50.
These were offered $9.05 late Friday.
Trade Idea 7: Buy the September 220/250 Call Spreads selling the 190 Put using a stop on the stock at 203.50.
These were offered for a 5 cent credit late Friday.
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After reviewing over 900 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which as the market heads into next week is looking very bullish again. Gold and Crude Oil are poised to continue higher with a chance that Gold digests its recent gains. The US Dollar Index looks better to the downside and Treasuries look to be contained back in the previous consolidation zone. The risk there is to the upside for Treasuries. The Shanghai Composite continues to flirt with a major break out and looks better to the upside with Emerging Markets stuck in a downward channel. Volatility retreated and is also set up better to the downside. Take away from that the upside risk is small. These influencers create a backdrop that supports more upside for the Equity Index ETF’s and their charts agree on both the short term and intermediate term timeframe. Use this information as you prepare for the coming week and trade’m well.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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