Top Trade Ideas for the Week of September 24, 2012: Bonus Idea

• Posted by Greg Harmon
• on September 24th, 2012

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

Deere, Ticker: $DE

Deere, $DE, is testing a triple top at 83.25 after moving out of consolidation. It has support for a run higher from the rising and bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is positive. There is a gap above from 86.63 to 86.88 and resistance above that at 88.66. The 3-box reversal Point and Figure chart (PnF) carries a price objective of 102. Support lower is found at 80.55 and 78.30 followed by 76 and 74. If it does not break on Monday there will likely be more trade alternatives. October does not have any strikes over 85 open now and November will only begin trading Monday. But there are some good options now as well.

Trade Idea 1: Buy the stock on a move over 83.25 with a stop at 81.75.

Trade Idea 2: Buy the October 85 Calls on a move over 83.25.

Trade Idea 3: Sell the October 75 Puts on a move over 83.25.

Trade Idea 4: Buy the December 75/87.5 bullish Risk Reversal

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early.

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