Top Trade Ideas for the Week of September 10, 2012: Bonus Idea

• Posted by Greg Harmon
• on September 10th, 2012

Here is your Bonus Idea with links to the full Top Ten:

CF Industries, Ticker: $CF

CF Industries, $CF, is testing the high at 218.25 after a series of steps higher. It has a Relative Strength Index (RSI) that is bullish and rising and a Moving Average Convergence Divergence indicator (MACD) that is about to cross to positive, both supporting further upside. There is no resistance above the previous high and support is found below at 205 and 200.50 followed by 191.60 and 178. The 3-box reversal Point and Figure chart (PnF) carries a price objective to 254.

Trade idea 1: Buy the stock on a move over 218.25 with a $4 trailing stop.

Trade idea 2: Buy the September14w 220 Calls on a move over 218.25. These were offered at 1.20 late Friday

Trade idea 3: Buy September 220/225 Call Spreads on a move over 218.25. This was offered at $1.36 late Friday.

Trade idea 4: Sell the September 200 Put on a move over 218.25. This was bid at 87 cents late Friday.

Trade idea 5: Buy September 220/225 Call Spreads selling the September 200 Put on a move over 218.25. This was offered at 49 cents late Friday.

Trade idea 6: Buy the October 220/225 Call Spreads selling the October 190 Put on a move over 218.25. This was offered at 35 cents late Friday.

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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, with the full workforce returning from vacation the markets are looking very bullish. Gold looks to continue its uptrend while Crude Oil may consolidate with in the current uptrend. The US Dollar Index is wounded and heading lower and US Treasuries look to follow it lower as well. The Shanghai Composite is ready for a continued bounce in the downtrend and Emerging Markets are looking higher in the broad range. Volatility looks to remain very low making for an environment for the equity index ETF’s SPY, IWM and QQQ, to continue higher. And all three charts on both the daily and weekly timeframes are set up to comply. 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.

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