Top Trade Ideas for the Week of August 6, 2012: Bonus Idea
- Posted by Greg Harmon
- on August 6th, 2012
Here is your Bonus Idea with links to the full Top Ten:
Wells Fargo, Ticker: $WFC
Wells Fargo, $WFC, is back at resistance at 34.50, making a 5 month ‘V’. It has a bullish Relative Strength Index (RSI) that is running higher with a moving Average Convergence Divergence indicator (MACD) that is near zero and close to a cross positive. There is clear air above 34.50 back until the 38.40 level from 2008 and a measures move higher to 41. The 3-box reversal Point and Figure chart carries a price objective of 57 above that. Support lower is found at 32.50 and 30 followed by 30.
Trade Idea 1: Buy the stock on a break over 34.50 with a 90 cent trailing stop.
Trade Idea 2: Buy the August 10th weekly Expiry 35 Calls (offered late Friday at 9 cents).
Trade Idea 3: Buy the August 17th Expiry 35 Calls and sell the 33 Puts (free) in a bullish Risk Reversal.
Trade Idea 4: Buy the August 10th weekly/August 17th 35 Call Calendar (13 cents).
Trade Idea 5: Buy the August 17th/September 35 Call Calendar (48 cents).
Trade Idea 6: Buy the August 17th/September 35 Call Calendar selling the September 32 Put for (9 cents).
Trade Idea 7: Buy the September/October 35 Call Calendar selling the September 32 Call (5 cents credit).
If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits feed and on chartly.
After reviewing over 1,000 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 dog days of August begin has the markets looking better. Gold and Crude Oil are poised to consolidate with a bias for an upside move on a break. The US Dollar Index and Treasuries seems content to move continue to pullback in their uptrends. The Shanghai Composite really looks ugly but may have a reprieve for a few days and Emerging Markets are poised to move higher. Volatility looks to remain low and possibly make new lows setting the stage for the Equity Index ETF’s SPY, IWM and QQQ, to continue to run higher. The inter-market view with the lower bias for Treasuries and the US Dollar, and higher bias for Crude Oil also support more upside for Equities. 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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