Top Trade Ideas for the Week of January 22, 2013: Bonus Idea
- Posted by Greg Harmon
- on January 22nd, 2013
Here is your Bonus Idea with links to the full Top Ten:
Jefferies Group, Ticker: $JEF
Jefferies Group, $JEF, is consolidating at the previous highs near 19 after retracing a move lower to 11.50. The Relative Strength Index (RSI) is in bullish territory and has now worked off the technically overbought condition with a Moving Average Convergence Divergence indicator (MACD) that is negative but holding. The Measured Move on a break higher takes it to 22 and there is support lower at 18.35 and 17.30 followed by 16.
Trade Idea 1: Enter long on a move over 19 with a stop at 18.50.
Trade Idea 2: Buy the February 19 Calls (offered at 35 cents late Friday) on a move over 19.
Trade Idea 3: Buy the February 18/19 bull Risk Reversal (25 cents) on a move over 19.
Trade Idea 4: Enter short on a move under 18.35 with a stop at 18.80.
Trade Idea 5: Buy the February 18 Puts (25 cents) on a move under 18.35.
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 heading into the shortened holiday week sees the markets continue to look bullish. Gold looks set to continue higher within the sideways channel while Crude Oil continues its rise. The US Dollar Index seems content to move sideways while US Treasuries are biased higher in the downtrend. The Shanghai Composite and Emerging Markets are biased to the upside on a break of their recent consolidations. Volatility looks to remain low and biased to move lower keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. There seems to be some rotation from the IWM into the SPY and now the QQQ is clearly lagging in a consolidation zone, keep an eye on it. 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)
- Macro Week in Review/Preview December 19, 2014
- Dragonfly Capital Views Performance Through December 2014 Expiry
- Charting An S&P 500 March Higher
- Premium Stuff
- Benzinga Morning Prep from December 18, 2014
- Getting a Rise in Dick’s for the Holidays
- Premium Earnings 12-18-14
- Checking Back on Crude Oil
- Time to Hook Up with PC Connection
- Premium Earnings 12-17-14