Top Trade Ideas for the Week of August 20, 2012: Bonus Idea
- Posted by Greg Harmon
- on August 20th, 2012
Here is your Bonus Idea with links to the full Top Ten:
Amgen, Ticker: $AMGN
Amgen, $AMGN, is breaking resistance of a bull flag with a top at 84. The Measured move higher takes it to 92. The Relative Strength Index (RSI) that is bullish and holding supports more upside but the Moving Average Convergence Divergence indicator (MACD) that is negative is not as bullish. Holding at a shallow level it could sway either way. The Simple Moving Average (SMA) break the tie with a bias higher. There is no resistance higher and support lower is found at 80.40 and 76 followed by 73.40, 71 and 67.60.
Trade Idea 1; Buy the stock on a move over 84 with a $1.60 trailing stop.
Trade Idea 2: Buy the September 85 Calls (offered at $1.11 late Friday) on the same trigger.
Trade Idea 3: Buy the October 85/90 Call Spreads ($1.42) on the same trigger.
Trade Idea 4: Sell the October 75 Puts ($0.55) on the same trigger.
Trade idea 5: Buy the October 85/90 Call Spreads selling the October 75 Puts ($0.87) on the same trigger.
Trade Idea 6: Buy the September/October 87.5 Call Calendar ($0.67) on the same trigger.
Trade Idea 7: Buy the September/October 87.5 Call Calendar selling the October 75 Puts ($0.12) on the same trigger.
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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, heading into the back half of August has the markets looking very similar to last week’s view. Gold and Crude Oil look best to continue higher, with a chance that Gold consolidates further. The US Dollar Index looks to consolidate, but with an upward bias and Treasuries look to continue lower. The Shanghai Composite looks to set new multi-year lows while Emerging Markets consolidate further before another upside move. Volatility looks to continue towards historic lows allowing for the Equity Index ETF’s SPY, IWM and QQQ to continue their rise to multi-year highs. The SPY looks the best followed by the QQQ and then the IWM, which is still among some previous congestion. It seems only a hard reversal by Treasuries could derail this market now. 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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