Top Trade Ideas for the Week of January 7, 2013: Bonus Idea
- Posted by Greg Harmon
- on January 7th, 2013
Here is your Bonus Idea with links to the full Top Ten:
Chevron, Ticker: $CVX
Chevron, $CVX, is back testing resistance at 111 after a pullback to the 200 day Simple Moving Average (SMA). It has a bullish and rising Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is positive and growing. Both support more upside. Resistance higher is found at 114.37 and 117.52 with support lower at 109.50 and 108.24 followed by 105.75. It is also exhibiting a Perfect Crab Pattern, which would give a Potential Reversal Zone (PRZ) between 127.94 and 133.47 in late March.
Trade Idea 1: Enter long on a move over 111.11 with a stop at 110.
Trade Idea 2: Buy the February 110 Calls (offered at $2.40 late Friday) on the same trigger.
Trade Idea 3: Sell the February 95 Puts (37 cents) on the same trigger.
Trade Idea 4: Buy the February 95/110 bullish Risk Reversal ($2.03) on the same trigger.
Trade Idea 5: Buy the March 100/115 bullish Risk Reversal (5 cents) on the same trigger.
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 financial markets get back to full strength, look for Gold to continue lower while Crude Oil continues higher. The US Dollar Index seems ready to continue higher while US Treasuries head lower, both with a chance that each may consolidate. The Shanghai Composite and Emerging Markets are biased to the upside with the possibility that each may also rest. Volatility looks to remain low and may continue lower keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the big moves higher this week. Their charts all look higher as well with the IWM the strongest followed by the SPY and the QQQ pulling back or possibly consolidating. Use this information as you prepare for the coming week and trade’m well.
Join the Dragonfly Capital Views Premium Membership
These trade ideas are one piece of the Premium Service, which is complemented by weekly trend analysis, daily earnings plays and access for personalized analysis. Sign up here to get deeper analysis and nearly 50 trade ideas every week.
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)
- SPY Trends and Influencers November 28, 2015
- Macro Posts This Past Week
- Macro Week in Review/Preview November 27, 2015
- How this Week’s Top 10 Performed, November 27, 2015
- Black Friday Sale on Gold
- Happy Thanksgiving from Dragonfly Capital
- Why a December Rate hike is not a lock
- Premium Earnings 11-24-15
- Tech is winning, but not the SOX?
- The sun is shining on First Solar