Top Trade Ideas for the Week of March 4, 2013: Bonus Idea

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

Baidu, Ticker: $BIDU
bidu

Baidu, $BIDU, has been in a long descending channel for over a year, but it is wide enough to play ranges. Currently it made a bottom at 88, where it found support in December and is moving higher. It has support for more upside from a rising Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD ) that has a signal line curling back higher and the histogram about to cross to positive. There is resistance at 94.01, the gap down level, and then 99.65 followed by a gap fill to 106.58 and then 112.

Trade Idea 1: Buy the stock on a move over 94 with a $2 trailing stop.

Trade Idea 2: Buy the March 95 Calls (offered at $1.36 late Friday) on a move over 94.

Trade Idea 3: Buy the March 95/100 Call Spreads ($1.02) on a move over 94.

Trade Idea 4: Buy the March/April 100 Call Calendars ($1.50) on a move over 94.

Trade Idea 5: Sell the March15/March28 85 Put Calendar (46 cent credit) on a move over 94.

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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, moving full force into March sees Equities looking more like a Lamb and the Dollar Index the Lion. Elsewhere Gold and Crude Oil are set up to continue lower with a chance of Gold consolidating. US Treasuries are also consolidating within the short term downtrend. The Shanghai Composite is back moving higher while Emerging Markets are biased to the downside with a risk of consolidation continuing from late this week. Volatility looks to remain low keeping the wind at the back of the Equity Index ETF’s SPY, IWM and QQQ. Their charts continue to be biased to the upside but are adding topping candles on the weekly views. The Exception is the QQQ that is almost imperceptibly moving higher in the longer time frame. US Treasuries driving higher and joining a strong Dollar would be the most troublesome scenario for Equity bulls. Use this information as you prepare for the coming week and trad’em well.

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Dragonfly Capital Views Performance Through February 2013 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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