Top Trade Ideas for the Week of November 12, 2012: Bonus Idea

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

Visa, Ticker: $V

Visa, $V, has been stair stepping higher since moving out of consolidation between 115 and 120 in the spring. The latest bull flag carries a Measured Move higher to 149 on a break over 145 and the price objective on the 3-box reversal Point and Figure chart (PnF) takes even higher to 156. The Relative Strength Index (RSI) is bullish and the Moving Average Convergence Divergence indicator (MACD) is positive, both supporting further upside. There is no resistance over 145 and support lower is found at 136.50 and 132.75 followed by 131.40 and 126.85.

Trade Idea 1: Enter long on a move over 145 with a $2.50 trailing stop.

Trade Idea 2: Buy the December 145 calls (offered at $3.05 late Friday) on the same trigger and trade them like the stock.

Trade Idea 3: Buy the December 145/150 Call Spreads ($1.80) on the same trigger.

Trade Idea 4: Sell the December 130 Puts (84 cents) on the same trigger.

Trade Idea 5: Buy the December 145/150 Call Spread selling the December 130 Put (95 cents) 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, as we shift focus from the election to the fiscal cliff sees the market revolting. Look for Gold to continue in its uptrend while Crude Oil consolidates with a bias lower. The US Dollar Index and US Treasuries are set to move higher. The Shanghai Composite and Emerging Markets look to consolidate, with the Shanghai Composite doing so in a downtrend. Volatility looks to remain low but slowly trending higher making a hard way for the equity index ETF’s SPY, IWM and QQQ, which all look better to the downside, despite some signs of possible reversals. Use this information as you prepare for the coming week and trade’m well.

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Dragonfly Capital Views Performance Through October 2012 Expiry

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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